The burden was falling on the farmers
The government has taken this decision at a time when fertilizer companies have started passing a part of the rising cost to the farmers. Fertilizer major IFFCO has increased the price of DAP from Rs 1,200 to Rs 1,350 per 50 kg bag (increase of 12.5 per cent), while the NPKS rate has been increased from Rs 1,290 to Rs 1,400 per 50 kg bag (increase of 8.5 per cent). . The price for other grades of NPK fertilizers – NPK – 1 and 2 – has gone up by Rs 20 to Rs 1,470 per bag.
There will be no shortage of fertilizers
Recently, the government on April 19 said that there will be no shortage of fertilizer in the upcoming kharif sowing season and it will soon announce the subsidy rate for non-urea soil nutrients for the current financial year. The availability of NPK fertilizer is estimated at 77.87 lakh tonnes against the requirement of 63.71 lakh tonnes in the 2022 kharif season.
Subsidy can be up to Rs 2.30 trillion
Recent reports have revealed that the fertilizer subsidy for the current fiscal could go up to Rs 2.30 trillion (lakh crore). This will be the biggest expenditure on fertilizer subsidy in a year, while the budget estimate for FY 2022-23 was only Rs 1.05 trillion. The major reason behind this is the rise in commodity and oil prices due to the war in Ukraine.