India Announces New Fertiliser Subsidy
The Indian Cabinet has accepted a proposal to alter the nature of fertiliser subsidies and offer partial relief for fertiliser prices.
Rather than basing it on the nature of the product, the extent of subsidy on a particular fertiliser will now depend on the quantity of nutrients it contains.
This "nutrient-based" subsidy aims to give subsidy to the percentage of four key nutrients – nitrogen, phosphorus, potash and sulphur – in the fertiliser pack, according to the specific needs of the soil.
The government raised urea prices by 10% and also plans to keep prices of non-urea fertilisers near to the current price band, to protect farmers.
The government controls the retail prices of fertilisers by providing subsidy of Rs49,980.25 crore ($10.793bn) to spare farmers from high fertiliser prices, Hindustan Times reports.