The Modi government is committed to supplying fertilizers to farmers at affordable prices despite the rise in international fertilizer prices due to Russia-Ukraine conflict, heavy procurement from China and other global factors. Due to this, the annual fertilizer subsidy can increase to Rs 2 lakh crore in the current financial year.
Farmers’ interest is paramount
Amid concerns being raised in some quarters and questions being raised by opposition parties in Parliament, a top government source on Monday said that farmers’ interests are paramount for the Modi government and it is already providing various crop nutrients (fertilizers). But it is clear from the huge subsidy being given and even if the subsidy increases, the government will not hesitate to give it.
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“The government has already made adequate advance arrangements for fertilizers, including 3 million tonnes of DAP (Di-Ammonium Phosphate) and 7 million tonnes of urea, for the kharif sowing season starting May, sources said. We are fully prepared for the requirements of Kharif season and will procure further as per the requirement.”
Government is giving subsidy of Rs 3,700 on one sack of urea
Government officials said that the price of urea in the domestic market today remained at Rs 266 per 50 kg bag, while in the international market its price has increased to Rs 4,000 per bag. In this way, the government has to give a subsidy of about Rs 3,700 on each sack. At the same time, the price of DAP in the domestic market is Rs 1,350 per bag, while its international price has increased to Rs 4,200 per bag. However, the price of NPK (complex fertiliser) has remained at Rs 1,470 per bag for almost a year now.
According to officials, the price of NPK has not changed since its price was raised to Rs 1,470 per bag from around Rs 1,300 a year ago. He also pointed out that fertilizer prices in India are very low as compared to neighboring countries like Pakistan and China. The prices are also low compared to countries like America, Indonesia and Brazil. A source said, “The concerns being raised about any increase in the prices of fertilizers are unnecessary.”
“We have not increased fertilizer prices despite the rise in international prices due to developments directly and indirectly coupled with global factors like the Russia-Ukraine war and sanctions on Iran,” the sources said. We are trying to keep the domestic prices unchanged in the interest of our farmers.
Besides, China is doing large-scale procurement to increase its domestic capacity, although it used to export earlier, sources said. Normally the fertilizer subsidy is around Rs 80,000-85,000 crore a year, but in recent times it has increased significantly. Chemicals and Fertilizers Minister Mansukh Mandaviya had said that the price of urea has not been increased in the last seven years so that farmers do not face any difficulty.