Centre Announces ‘Historic’ Increase of 140% in Fertiliser Subsidy

The “historic decision” was taken in a high-level meeting chaired by PM Modi on the issue of fertiliser prices.

A farmer sprays a mixture of fertiliser and pesticide onto his wheat crop on the outskirts of Ahmedabad. Image used for representational purposes.

(Photo: PTI)

The Centre on Wednesday, 19 May, announced an increase in the subsidy for Diammonium Phosphate (DAP) fertiliser by 140 percent, from Rs 500 per bag to Rs 1,200 per bag.

The “historic decision” was taken in a high-level meeting chaired by Prime Minister Narendra Modi on the issue of fertiliser prices which are increasing due to the surge of rates of phosphoric acid and ammonia internationally.

The prime minister stressed that “farmers should get fertilisers at old rates despite the international rise in prices.”

"A historic decision was taken to increase the subsidy for DAP fertiliser from Rs 500 per bag to Rs 1,200 per bag, which is an increase of 140 percent," an official statement said.

“Thus, despite the rise in international market prices of DAP, it has been decided to continue selling it at the older price of Rs 1,200 and the central government has decided to bear all the burden of price hike.”

Official statement 

"The welfare of farmers is at the core of government's efforts," the PM's Office said in the statement.

Last year, the actual price of DAP was Rs 1,700 per bag for which the central government was giving a subsidy of Rs 500 per bag.

Recently, the international prices of phosphoric acid and ammonia used in DAP have gone up by 60 to 70 percent. So the actual price of a DAP bag is now Rs 2,400, which could be sold by fertiliser companies at Rs 1,900 after considering the subsidy of Rs 500. Farmers however will continue to get it at Rs 1,200.

This is the second major decision for farmers after directly transferring Rs 20,667 crore in farmers' account under PM-KISAN on the occasion of Akshay Tritiya.