Cabinet approves ₹3.7 trillion for fertilizer subsidy schemes
2 min read 28 Jun 2023, 05:58 PM ISTThe Urea Subsidy scheme aims to ensure constant availability of urea to farmers at the same price of ₹242/45 kg bag for the next three years
PremiumNew Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a bouquet of fertilizer schemes, including the Prime Minister's PRANAM scheme, urea scheme, and organic manure scheme, to boost wellbeing of farmers, rejuvenate soil productivity, and ensure food security and environmental sustainability with a total allocation of ₹3.70 trillion.
Promotion of Alternate Nutrients for Agriculture Management Yojana (PRANAM) aims to promote balanced use of fertilizers along with bio-fertilizers.
The urea subsidy scheme, which has been extended for another three years till March 2025, aims to ensure constant availability of urea to farmers at the same price of ₹242/45 kg bag. The actual cost of a bag comes around ₹2,200. This scheme, which entails a cost of ₹3.68 trillion, will be wholly financed by the Centre through budgetary support.
This allocation is over and above the recently approved Nutrient Based Subsidy phosphatic and potassic (P&K) fertilizers of ₹38,000 crore for 2023-24 Kharif season.
That CCEA, chaired by Prime Minister Narendra Modi, also approved ₹1,451 crore subsidy to promote organic manure, taking the total package to over ₹3.70 lakh crore.
“The farmers need not spend extra for purchase of urea, and this will help moderate their input costs," Union minister Mansukh Mandaviya told reporters after the Cabinet meeting. “The continuation of Urea Subsidy scheme will also maximize indigenous production of Urea to reach self-sufficiency levels."
Mandaviya also said that eight nano urea plants with production capacity of 44 crore bottles of conventional urea will be commissioned by 2025-26. “Nano urea plants will reduce our current import dependency in urea and finally make us self-sufficient by 2025- 26."
Production of urea has increased to 284,000 tonne in 2022-23 from 225,000 tonnes in 2014-15, to 250 lakh tonne during 2021-22.
Nano fertilizers release nutrients in a controlled manner contributing to higher nutrient use efficiency and while costing less to the farmers. Application of mano urea has demonstrated increase in crop yield, the minister added.
The Union Cabinet also approved ₹1.45 trillion crore for market development assistance (MDA) to promote organic fertilizers from Gobardhan plants.
Organic fertilizers will help address the challenge of management of crop residue and problems of stubble burning, and keeping the environment clean and safe. It will also provide an additional source of income for farmers as they will get organic fertilizers at affordable prices.
The Cabinet also introduced sulphur-coated urea (Urea Gold) to address the issue of sulphur deficiency of soil and save input costs for farmers.
