Cabinet Approves Nutrient Based Subsidy (NBS) Rates for RABI Season, 2023-24

Context:

• The Union Cabinet approved the nutrient based fertilizer subsidy rates for the 2023-24 Rabi season at Rs 22,303 crore to the government on Phosphatic and Potassic (P&K) fertilizers.

Nutrient Based Subsidy Data: 78% Spent by August

• The government will provide subsidies of Rs 47.02 per kg for nitrogen, Rs 20.82 per kg for phosphorus, Rs 2.38 per kg for potash and Rs 1.89 per kg for sulfur-based fertilizers. 
• For the current financial year, the central government has earmarked Rs 44,000 crore for nutrient based subsidy.
• As per the latest available data, Rs 34,111 crore was spent on nutrient based subsidy April-August period, which is 78% of the full year.

What is the Nutrient Based Subsidy (NBS)?

• Under  Nutrient Based Subsidy (NBS), the government fixed a per-kg subsidy for each fertilizer nutrient: Nitrogen (N), phosphorus (P), potash (K) and sulfur (S).
• NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1) of NPK fertilization is achieved.
• Nodal Ministry: Ministry of Chemicals & Fertilizers.

What are the benefits of based fertilizer subsidy?

• The availability of fertilizers to farmers at subsidized, affordable and reasonable prices will be ensured.
• Rationalization of subsidy on P&K fertilizers in view of recent trends in the international prices of fertilizers and inputs.

News Source: Deccan Herald

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