New Delhi, Sep 18 : The Union Cabinet on Wednesday approved nutrient-based subsidy (NBS) rates for the upcoming Rabi crops on phosphatic and potassic (P&K) fertilisers with a budgetary outlay of Rs 24,475.53 crore.

The Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal of the Ministry of Chemicals and Fertilisers that would ensure the availability of fertilisers to farmers at subsidised, affordable, and reasonable prices.

It will also offer rationalisation of subsidy on P&K fertilisers in view of recent trends in the international prices of fertilisers and inputs.

"The subsidy on P&K fertilisers will be provided based on approved rates for Rabi 2024 to ensure smooth availability of these fertilisers to the farmers at affordable prices," said the Cabinet in its decision.

The government is making available 28 grades of P&K fertilisers to farmers at subsidised prices through manufacturers and importers.

According to the ministry, the subsidy on P&K fertilisers is governed by the NBS scheme, in accordance with the government's farmer-friendly approach.

In view of the recent trends in the international prices of fertilisers and inputs (urea, DAP, MOP and sulphur), the government decided to approve the NBS rates for Rabi 2024, effective from October 1 till March 31, 2025, on phosphatic and potassic fertilisers. The subsidy would be provided to the fertiliser companies as per approved and notified rates so that these are made available to farmers at affordable prices.

Last month, the government said it had paid out a subsidy of Rs 36,993.4 crore during the first four months of the current financial year (April-July 22) to ensure adequate availability of fertilisers at affordable prices to farmers in the country. According to Minister of State Anupriya Patel, under the DBT (direct benefit transfer) in fertilisers system, 100 per cent subsidy on various fertiliser grades is released to the fertiliser companies, on actual sales to the beneficiaries based on Aadhaar authentication through POS devices installed at each retail shop. A subsidy of Rs 1.95 lakh crore was released in the last year (2023-24) to provide farmers with fertilisers at lower prices. In February this year, the Centre had announced Rs 24,420 crore subsidy for summer crop fertilisers.

/IANS