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.