The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertlizersfor the year 2016-17, due to decreasing trend in international prices of finished fertlizers and raw materials.
At the same level of consumption of P&K fertilizers the total subsidy implication on P&K fertilizers for 2016-17 at proposed rates works out to be about Rs.21,274 crore.
Government has been implementing Nutrient Based Subsidy (NBS) Policy for decontrolled P&K fertilizers w.e.f. 1stApril, 2010. Under this Policy, the subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government of annual basis for each nutrient i.e., Nitrogen (N), Phosphorous (P), Potash (K) and Sulphur (S) on per kg basis which is converted into subsidy per tonne depending upon the nutrient content in each grade of the fertilizers.
These rates are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.
