The government today approved a proposal for a reduction in the subsidy on decontrolled phosphatic and potassic fertilisers for the 2012-13 financial year.
The cabinet committee on economic affairs (CCEA) today approved a proposal by the department of fertilisers for fixation of rates of nutrient-based subsidy (NBS) on P and K fertilisers for the year 2012-13.
Under the NBS, the subsidy rate (per kg) of fertiliser nutrients, namely nitrogen (N), phosphate (P), potash (K) and sulphur (S) for the financial year 2012-13 have been fixed at Rs24, Rs21.804, Rs24 and Rs1.677, respectively.
The NBS policy for the 2011-12 fiscal had fixed the subsidy on N, P and K at Rs27.15, Rs32.33 and Rs26.76 per kg, respectively.
The reduction in subsidy has been made to offset the impact of a decline in rupee value against bearish global prices, official sources said today.
Accordingly, the subsidy on di-ammonium phosphate (DAP) and muriate of potash (MOP) would be Rs14,350 per tonne and Rs14,440 per tonne, respectively. The subsidy on other P&K fertilises covered under the NBS will be as per the nutrient content in the grades.