Govt increases subsidy on DAP Fertilizers to Rs.1200 per bag, To spend additional 14,775 Crore this Kharif season

New Delhi : The union government has decided to increase the subsidy for DAP fertiliser from Rs. 500 per bag to Rs. 1200 per bag, which is an increase of 140%. After this decision, Farmers will continue to get the fertilizer at the older price of Rs.1200. The government will spend additional Rs. 14,775 crore in this Kharif season.

The decision was taken at a high level meeting chaired by the Prime Minister Narendra Modi.

Last year, the actual price of DAP was Rs 1,700 per bag. In which the Central Government was giving a subsidy of Rs. 500 per bag. So the companies were selling fertilizer to farmers for Rs 1200 per bag.

Recently, the international prices of phosphoric acid, ammonia etc. used in DAP have gone up by 60% to 70%. So the actual price of a DAP bag is now Rs 2400, which could be sold by Fertilizer companies at Rs 1900 after considering a subsidy of Rs 500. With todays decision, farmers will continue to get a DAP bag for Rs 1200.

The Central Government spends about Rs 80,000 crore on subsidies for chemical fertilisers every year. With the increase in subsidy in DAP, Government of India will spend an additional Rs 14,775 crore as subsidy in Kharif season.