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Cabinet extends one-time package to subsidise key fertiliser DAP
Jan-02-2025

The Union Cabinet has extended a one-time package to subsidise key fertiliser DAP at the cost of up to Rs 3,850 crore and approved a one-year extension of two crop insurance schemes. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, extended two crop insurance schemes – Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS)-- for one more year till 2025-26 and created a separate Rs 824.77 crore fund for technology infusion in the implementation of flagship schemes. PMFBY and RWBCIS have been extended to align it with the 15th Finance Commission period. The total outlay for PMFBY and RWBCI has been enhanced to Rs 69,515.71 crore for 2021-22 to 2025-26, higher from Rs 66,550 crore for 2020-21 to 2024-25.

In another big decision, the Union Cabinet extended an additional subsidy on di-ammonium phosphate (DAP) beyond December 31, 2024, to help maintain retail prices of this key fertiliser at Rs 1,350 per bag of 50 kg. Last year, the Centre announced a one-time special package on DAP at Rs 3,500 per tonne, valid from April 1, 2024, to December 31, 2024, with a financial implication of Rs 2,625 crore to keep prices under check. The package was over and above the nutrient-based subsidy (NBS) fixed by the government on non-urea nutrients.

The Cabinet also approved the proposal for an extension of a one-time special package on DAP at the rate of Rs 3,500 per tonne for the period from January 1, 2025, till further orders. The special package on DAP will be provided over and above the approved NBS (nutrient-based subsidy) to ensure the smooth availability of DAP fertiliser to the farmers at an affordable price. The Centre provides 28 grades of P&K (phosphatic and potassic) nutrients to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by the NBS Scheme, with effect from April 1, 2010.


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