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(The Gist of PIB) Subsidy on DAP

(THE GIST OF PIB) Subsidy on DAP

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PM Narendra Modi chaired a high level meeting on the issue of fertiliser prices. It was discussed that the price of fertilisers is undergoing an increase due to the rising prices of phosphoric acid, ammonia etc internationally.
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.
Recently, the international prices of phosphoric acid, ammonia etc. used in DAP have gone up by 60% to 70%. So, the actual price of a DAP bag is now Rs 2400, which could be sold by Fertilizer companies at Rs 1900 after considering a subsidy of Rs 500. With recent decision, farmers will continue to get a DAP bag for Rs 1200.