The Union Cabinet has cleared ₹41,534 crore towards nutrient-based fertiliser subsidy for the summer-sowing season, a 12% jump from the previous cropping cycle.
The higher subsidy aims to keep the price of 50-kg packages of diammonium phosphate (DAP) steady at ₹1,350 despite higher import prices.
The nutrient-based subsidy regime offers fertilisers at lower-than-market price to farmers based on their phosphatic and potassic content.
India relies on imports of fertilisers such as urea, DAP and muriate of potash, along with liquefied natural gas, which fires crop-nutrient plants.
The latest hike in subsidies pertains to a category of crop nutrients that are heavily reliant on imports.
The government's overall annual subsidies are expected to increase due to the West Asian crisis.
