The Union Cabinet on Wednesday approved a Rs 700 per bag hike in subsidy for DAP fertilizer to protect farmers from its surging prices due to the increasing cost of raw materials globally. This will cost an additional of Rs 14,775 crore to the exchequer. The hike is part of the government’s effort to ensure that farmers get the key soil nutrient at old rates of Rs 1200 per bag.
With rise in global prices, the actual price of DAP reached Rs 2,400 per bag. DAP is the second most popular fertiliser among Indian farmers behind urea — in 2020-21, 119.13 lakh tons of DAP were purchased, compared to 350 lakh tons for the top-selling urea. Beside DAP, the government is providing Rs 900 per bag subsidy on urea.
The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi. Briefing the media, Minister of State for Chemicals and Fertilisers Mansukh Mandaviya on Wednesday said the Cabinet has approved increasing the subsidy amount for DAP fertiliser for the benefits of farmers.