The Union Cabinet has approved an extension of the One-time Special Package on Di-Ammonium Phosphate (DAP). This package, providing an additional subsidy of ₹3,500 per metric tonne over the existing Nutrient-Based Subsidy (NBS), will now continue beyond January 1, 2025, until further notice. The decision aims to ensure the continued availability of DAP at affordable prices for farmers.
Implementation Details
The additional subsidy will be provided over and above the ongoing NBS scheme, which has governed subsidies for 28 grades of phosphorus and potassium (P&K) fertilizers since its inception on April 1, 2010. This decision extends the Cabinet’s July 2024 approval of the subsidy, initially applicable from April 2024 to December 2024, which involved a financial outlay of approximately ₹2,625 crore.
Objective
The extended package will support farmers by ensuring a steady supply of DAP at stable prices, despite global market fluctuations and geopolitical uncertainties. The move is part of the government’s broader strategy to maintain uninterrupted fertilizer supply during key agricultural seasons, including Kharif and Rabi crops for the 2024-25 period.