Cabinet Extends Special Subsidy Package for DAP Fertilizer

On 1st January 2025, the Union Cabinet approved the continuation of the special subsidy package on Di-Ammonium Phosphate (DAP) with an additional ₹3,500 per metric tonne subsidy over the existing Nutrient-Based Subsidy (NBS).

Key Points

Previous Approval: The subsidy, initially approved in July 2024 for April–December 2024, involved a financial outlay of ₹2,625 crore.
Objective: Ensures DAP availability at affordable prices to farmers, mitigating the impact of global market volatility and geopolitical uncertainties.
Implementation: The subsidy complements the NBS scheme governing 28 grades of phosphorus and potassium fertilizers since April 2010, stabilizing fertilizer prices during key agricultural seasons like Kharif and Rabi.