In a significant move to stabilize fertilizer prices for farmers, the Indian government extended the additional subsidy on di-ammonium phosphate (DAP) beyond December 31, 2024. This extension aims to maintain the retail price of DAP at ₹1,350 per 50 kg bag. The decision, approved by the Union Cabinet chaired by Prime Minister Narendra Modi, is expected to cost the exchequer up to ₹3,850 crore.
Last year, a one-time special package of ₹3,500 per tonne was introduced from April 1, 2024, to December 31, 2024, at a financial implication of ₹2,625 crore. This package supplemented the nutrient-based subsidy (NBS) on non-urea fertilizers. The latest extension continues the package from January 1, 2025, until further notice.
“Farmer Welfare in Focus”
Information and Broadcasting Minister Ashwini Vaishnaw emphasized the government’s commitment to farmer welfare, noting that the additional subsidy would shield farmers from the volatility of global DAP prices. “Farmers will continue to get DAP at ₹1,350 per bag, and the central government will bear the extra cost,” Vaishnaw stated.
The government attributed the price stability to its farmer-friendly approach despite geopolitical uncertainties and fluctuating global market prices.
Subsidy Commitment
Since 2010, the subsidy on 28 grades of phosphatic and potassic (P&K) fertilizers has been governed by the NBS Scheme. Between 2014 and 2024, the Modi government provided ₹11.9 lakh crore in fertilizer subsidies, more than double the ₹5.5 lakh crore spent during 2004-2014.
This initiative ensures affordable DAP availability for Kharif and Rabi crops in 2024-25, furthering the government’s aim to support the agricultural sector while addressing global supply challenges.
