Subsidy on DAP hiked to record Rs 1,200/bag to keep prices steady
20 May 2021
The public authority has chosen to build the sponsorship for diammonium phosphate (DAP) compost to Rs 1,200 a sack of 50 kg from Rs 500.
This will help farmers keep on getting DAP at the current pace of Rs 1,200 a sack, regardless of a leap in its genuine cost because of higher crude material cost. This is the most elevated ever endowment given on DAP in one go.
"The climb in sponsorship will put an extra monetary weight of Rs 14,776 crore on the focal government, which spends around Rs 80,000 crore on appropriations for synthetic manures each year," a senior compost service official said. The choice was made at a significant level gathering led by the Prime Minister who said the public authority is focused on the government assistance of farmers and will take all endeavors to guarantee that farmers don't need to confront the brunt of value rise.
As of late, the global costs of synthetics like phosphoric corrosive, alkali and other crude materials utilized in DAP gone up by 60-70%, expanding the genuine cost of DAP to Rs 2,400 from Rs 1,700 last year. "The government was giving an endowment of Rs 500 for each pack. Thus, without the climb in appropriation, compost organizations would have sold DAP at Rs 1,900 a pack to farmers. However, with the present choice, there will be no adjustment of cost and farmers would have the option to get the compost at the current cost of Rs 1,200," the authority said.
A year ago, after the Rs 500 endowment, organizations were offering DAP to farmers at Rs 1,200 for every sack.