- The Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic(P&K) fertilizers for the year 2019-20.
- This decision will help manufacturers and importers formalise supply contracts for fertilisers and fertiliser inputs and make them available to farmers during the current year.
- Government provides fertilizers, Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
- In 2010,the government had launched the NBS programme under which a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidised P&K fertilisers.This is except for urea based on the nutrient content present in them.
- Additional subsidy is also provided on the fertilizers fortified with secondary and micronutrients as per the Fertilizer Control Order such as Boron and Zinc.
- Under this scheme,Maximum Retail Price(MRP) of fertilizers has been left open and manufacturers/marketers are allowed to fix the MRP at reasonable level.
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