In response to the dynamic shifts in global fertilizer and input prices, the government has taken a decisive step by approving NBS rates for Rabi 2023-24, effective from October 1, 2023, to March 31, 2024, specifically targeting Phosphatic and Potassic (P&K) fertilizers.
DAP Subsidy has been reduced by 31% i.e. Rs.505 per 50 kg bag. Now subsidy on DAP is Rs.22541 per ton during Rabi 2023-24. Reduction in subsidy is due to reduction in international prices during Kharif 2023.
In the upcoming Rabi season 2023-24, an expenditure of Rs.22,303 crore including support for indigenous fertilizer (SSP) through freight subsidy, is expected on NBS.
This strategic move not only secures the availability of fertilizers for farmers at subsidized and reasonable prices but also showcases a proactive adjustment in subsidy rationalization, taking into account the dynamic shifts in international fertilizer and input prices.