DAP Fertilizer Subsidy

News: PM Narendra Modi chaired a high level meeting on the issue of fertiliser prices. A detailed presentation was given to him on the issue of fertiliser prices.

Background:

  • It was discussed that the price of fertilisers is undergoing an increase due to the rising prices of phosphoric acid, ammonia etc internationally. PM stressed that farmers should get fertilisers at old rates despite the international rise in prices.
  • The Central Government spends about Rs 80,000 crore on subsidies for chemical fertilisers every year. With the increase in subsidy in DAP (Diammonium Phosphate), Government of India will spend an additional Rs 14,775 crore as subsidy in Kharif season.

Details:

  • A historic decision was taken to increase the subsidy for DAP fertiliser from Rs. 500 per bag to Rs. 1200 per bag, which is an increase of 140%.
  • Thus, despite the rise in international market prices of DAP, it has been decided to continue selling it at the older price of Rs.1200 and the central government has decided to bear all the burden of price hike. The amount of subsidy per bag has never been increased so much at once.
  • PM remarked that his Government is committed to the welfare of farmers and will take all efforts to ensure that farmers do not have to face the brunt of price-rise.

Classification of fertilisers:

  • Straight fertilizers:  Straight fertilizers are those which supply only one primary plant nutrient, namely nitrogen or phosphorus or potassium. Eg. Urea, ammonium sulphate, potassium chloride (Muriate of potash- MOP) and potassium sulphate.
  • Complex fertilizers:  Complex fertilizers contain two or three primary plant nutrients of which two primary nutrients are in chemical combination. These fertilisers are usually produced in granular form. Eg. Diammonium phosphate (DAP), nitrophosphates and ammonium phosphate (NPK).
  • Mixed fertilizers: These are physical mixtures of straight fertilisers. They contain two or three primary plant nutrients. Mixed fertilisers are made by thoroughly mixing the ingredients either mechanically or manually.