Centre cuts non-urea fertilizer subsidy  

#GS2 #Governance  

  • The Centre has cut the subsidy for non-urea fertilizers this year to ₹22,186 crores.   
  • That is about 3% lower than the ₹22,875 crore which was the estimated expenditure on the nutrient-based subsidies in 2019-20.  
  • The Cabinet Committee on Economic Affairs decided to reduce the subsidy for nitrogen-based fertilizers to ₹18.78 per kg, for phosphorus-based fertilizers to ₹14.88 per kg, and set the subsidy for potash-based fertilizers at ₹10.11 per kg, according to an official statement.   
  • And while the subsidy for sulfur-based fertilizers had been raised last year to ₹ 3.56 per kg, from ₹2.72 per kg, this year it has been slashed to just ₹2.37 per kg.  
  • The CCEA also approved the inclusion of a complex fertilizer, ammonium phosphate, under the nutrient-based subsidy scheme.   
  • The scheme was set up in 2010 to ensure the availability of phosphatic and potassic fertilizers to farmers at an affordable price, as the retail prices of such non-urea fertilizers are decontrolled and set by manufacturers.  
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