Subsidy on DAP has not been reduced at all; MRP of DAP has been maintained at Rs. 1350/- per 50 Kg bag since Covid times
For Rabi season, the increase in subsidy has been effected by two Cabinet decisions
Total budgetary allocation increased to Rs.24,475 crores for Rabi 2024-25
Posted On: 23 OCT 2024 8:46PM by PIB Delhi
Some reports published in the media recently claiming shortage of DAP across the country and its resultant effect on prospects of Rabi crop are misleading, misplaced and devoid of factual position.
It is clarified that the MRP of DAP has been maintained at Rs. 1350/- per 50 Kg bag since Covid times.
Further, the subsidy on DAP has not been reduced at all. Instead, for the benefit of farmers, via two Cabinet decisions, an increase in subsidy has been effected for Rabi 2024.
Firstly, Rs. 3500/- per MT as a special package costing Rs. 2625 crores has been provided to make the price sustainable for companies for procurement of DAP so that the procurement capacity at company level remains unaffected by the price volatility.
Secondly, the overall increase in prices in the international market has been taken care of by another Cabinet decision by which subsidy has been linked to the market prices. Thus, if the procurement price of P&K fertilizer, including DAP, increases in the global market, the procurement capacities of the companies are not affected. Therefore, farmers are the ultimate beneficiaries.
In addition to this, the total budgetary allocation for Rabi 2024-2025 has been increased to Rs. 24,475 crores.
It may be noted that the availability of DAP has been affected somewhat by several geo-political factors including the long route taken by the vessels through Cape of Good Hope instead of Red sea. However, intensive efforts have been made by the Department of Fertilizers to augment the availability substantially during Sept–Nov, 2024.
