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Big news for farmers! Fertilizer subsidy will be 2.5 lakh crore this year, there may be 25 percent reduction in the next financial year

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In the current financial year, the scope of subsidy on fertilizers can be increased to 2.5 lakh crores.
In the next financial year, there can be a big decline of 25 percent in it.
Due to softening in the prices of fertilizers in the global market, the subsidy of the government can be reduced.

New Delhi. There is big news for crores of farmers of the country. The Modi government may increase the scope of subsidy on fertilizers to Rs 2.3 to 2.5 lakh crore in the current financial year, but in the next financial year there may be a big drop of 25 percent. The Fertilizers Association of India (FAI) has said that due to the softening of fertilizer prices in the global market in 2023-24, the subsidy of the government may also reduce.

FAI has said that despite the government’s subsidy, the industries are getting very less margin and due to increase in the prices in the global market, there is constant pressure on the retail price of fertilizers in the domestic market. This is the reason that investment in this sector is also decreasing rapidly. However, there is sufficient quantity of manure in the country for the current rabi season and there is no shortage of fertilizers like urea, DAP. FAI President KS Raju told that the fertilizer subsidy for the current financial year can go up to Rs 2.5 lakh crore.

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By increasing the subsidy, the farmers will get relief from the increased prices and they will not be put under the pressure of the increased prices of fertilizers and raw materials in the global market. Fertilizers subsidy was just Rs 162 lakh crore in the last financial year.

Subsidy will be reduced by 25 percent next year
FAI board member PS Gehlaut said, there could be a big drop of 25 per cent in fertilizers subsidy next year. It will be about 65 thousand crore rupees in terms of existing subsidy. The reason for this is the softening of the prices of raw materials and fertilizers in the global market. However, it will depend on the trend in the futures market.

falling prices
The prices of fertilizers are continuously softening in the global market. The price of DAP increased from $555 per tonne in April 2021 to $945 in July 2022. Now it has fallen back to $722 in October. Similarly, the price of phosphoric acid had gone up to $1718 per tonne in July 2022, which has now come down to $1355 per tonne. The price of imported urea, which had increased to $ 1,000 per tonne in December 2021, has now come down to $ 600 per tonne.

Tags: business news in hindi, farmer, Fertilizer Shortage, urea production

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