Despite the cost hike, farmers will continue to get 50-kg bags of Di-Ammonium Phosphate (DAP) at ₹1,350, the government said on Wednesday. This will be possible with the approval of a one-time special package of ₹3,850 crore.

“There will be an additional subsidy of ₹175 per bag over and above the subsidy provided under the Nutrient Based Subsidy (NBS) scheme,” Information & Broadcasting Minister Ashwini Vaishnaw said in a press briefing. The special package on DAP of ₹3,500 per MT will be provided from January 1 until further notice, over and above the approved NBS subsidy, to ensure the smooth availability of DAP fertiliser to farmers at an affordable price.

• Also read: Centre acts to boost DAP availability, blames global suppliers

Vaishnaw also warned that legal action will be taken against retailers if they collect more than ₹1,350 from farmers.

28 grades of P&K fertilisers are made available to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by NBS Scheme w.e.f April 1, 2010. According to a government statement, continuing its topmost priority of keeping farmers’ welfare in focus, the government has extended massive relief to farmers by keeping the price of DAP fertiliser unchanged.

In spite of geo-political constraints and volatility in global market conditions, the government kept its commitment to a farmer-friendly approach by ensuring the availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25. The Cabinet in July 2024 approved a one-time special package on DAP beyond the NBS subsidy of ₹3,500 per MT from April 1, 2024, to December 31, 2024, with an approximate financial implication of ₹2,625 crore.

• Also read: DAP price should be higher than all other fertilizers, says FAI

Crop insurance

In another decision, the Cabinet approved an enhanced allocation of ₹69,515 crore under the PM Fasal Bima Yojana. Additionally, the Fund for Innovation and Technology (FIAT), amounting to ₹800 crore, has been approved to ensure the use of technology for faster assessment, quicker claim settlement, and fewer disputes.