Nutrient based subsidy on mixed fertilizers

NEW DELHI: The government is not providing any direct subsidy on mixed fertilizers to farmer said minister of state for chemicals and fertilisers, Srikant Kumar Jena in Rajya Sabha today. However, manufacturers of mixture fertilizers are eligible to source subsidized phosphatic and potassic (P&K) fertilizers from the manufacturer/importers after their receipt in the districts as inputs for manufacturing mixture fertilizers for agricultural purpose. The respective state governments monitor the activities of manufacturers of mixture fertilizers.

Under the Nutrient Based Subsidy (NBS) policy for P&K fertilizers, being implemented w.e.f. 1.4.2010, the government provides a fixed amount of subsidy, decided on annual basis, on each grade of subsidized P&K fertilizers depending upon their nutrient content.

The fertilizer companies have been allowed to fix Maximum Retail Prices (MRPs) of P&K fertilizers at reasonable level. For these fertilizers, the farmers are paying much less than the delivered cost.

The amount of applicable subsidy is printed along with the MRP of the subsidized fertilizers on each bag sold in the market.