Government of India has taken a historical decision to increase subsidy on DAP fertilizers, in favour of Indian farmers, which is hiked 140%.
Farmers will get subsidy of Rs.1200/- per 50 Kg bag of DAP fertilizer in place of Rs.500/- per 50 Kg bag. Now Indian farmers will get a 50 Kg DAP fertilizer bag @ Rs.1200/- instead of Rs.2400/- per 50 Kg. bag, despite the hike in international price of DAP fertilizer and its raw material.
Government of India will have additional subsidy burden of Rs.14775 crores on this account.
Likely NBS rates for 2021-22 maybe:
Accordingly, for DAP, it should be Rs.24,231/- against existing Subsidy of Rs.10,231/- with the increase of Rs.14,000/- per ton.