Amid strong farmer resentment, the Centre currently elevated its share of subsidy for Di-Ammonia Phosphate (DAP) by one hundred forty for every cent from Rs 500 for every bag to Rs 1200 for every bag, thereby rolling again the steep 58 for every cent hike in charges introduced by firms given that April.
The raise in subsidy will allow for fertilizer firms to market DAP at the old fee of Rs 1200 for every bag as from the new price tag of Rs 1900 for every bag which was applicable from April one, 2021.
The choice to hike the Centre’s subsidy on DAP was taken at a significant-degree conference which was chaired by Primary Minister Narendra Modi, in accordance to an formal statement.
The statement claimed that the Centre will spend an extra subsidy of Rs fourteen,775 crore on fertilizer subsidy in the current financial yr.
It ordinarily incurs a subsidy of all-around Rs eighty,000-85,000 crore on fertilizer every yr.
In the previous few months, all significant fertilizer firms which include the largest of them all, IFFCO had hiked DAP prices together with charges of other sophisticated fertilizers as global charges of phosphoric acid and ammonia, which are essential components of earning DAP has risen by sixty-70 for every cent.
Knowledge exhibits that the landed price tag of imported DAP was all-around $383 for every tonne which rose to all-around $515 for every tonne (CFR) in April, an raise of 35 for every cent in just over 3 months.
This has produced common resentment amid the country’s farmers which together with the steep hike in diesel charges would have elevated the enter costs noticeably.
In some crops these as soybean, some estimates claimed that the enter expense would have gone up straight absent by Rs 1400-2000 for every hectare owing to the raise in DAP charges.
The formal statement claimed that due to the fact of the raise in global charges of essential raw products, the real price tag of a bag of DAP was coming to all-around Rs 2400 for every bag, which the fertilizer firms had been compelled to market at Rs 1900 for every bag as the Central subsidy was minimal at Rs 500 for every bag.
Right after today’s choice, fertilizer firms can market DAP at the old fee of Rs 1200 for every bag, as the Centre has elevated its quantum of subsidy.
In April 2020, the union government had mounted the prices of Nutrient Primarily based Subsidy, NBS prices for Phosphatic and Potassic (P and K) Fertilizers for the yr 2020-21 at 18 rupees seventy eight paise for every kg for Nitrogen, fourteen rupees 88 paise for every kg for Phosphorus, 10 rupees eleven paise for every kg for Potash and 2 rupees 37 paise for every kg for Sulphur.
This was maintained for a different yr as effectively in April 2021.
The Centre has been making an attempt to impress upon fertilizer firms to not move the effect of significant enter costs to the farmers and maintain again their hike in DAP prices, but to minor avail. IFFCO had made the decision to market its old DAP stocks at old prices, but that could be for a minimal time as the old stocks could not have met the complete season’s demand from customers.
Meanwhile, previously currently, Union Chemical compounds and Fertilizer Minister D V Sadananda Gowda had certain NCP chief Sharad Pawar that a choice on roll-again of the hike in fertilizer charges will be taken inside two days. Pawar had written a letter to Gowda demanding a roll again of DAP charges.
Meanwhile, throughout the day, the Opposition Congress attacked the government over a hike in fertilizer charges, and claimed this will put an extra burden of Rs twenty,000 crore on the farmers.
Party chief Rahul Gandhi claimed the government has elevated the charges of fertilizers, petrol and diesel, and reduced agri subsidies and profits of farmers.
“What did the Modi government raise? GST and petrol, diesel and fertilizer charges profits of ‘Modi’s friends’ atrocities on ‘annadatas’ even throughout the pandemic,” he claimed in a tweet in Hindi, citing a news report about the increase in diesel and fertiliser charges. EoM