New Delhi, Apr 27 (IANS): The Union Cabinet, chaired by Prime Minister, Narendra Modi, on Wednesday approved a subsidy of Rs 60,939.23 crore for phosphatic and potassic (P&K) fertilisers, including DAP, for the first six months of this fiscal, as part of its efforts to provide soil nutrients to farmers at an affordable price.

Briefing the media, Information and Broadcasting Minister Anurag Thakur said that the subsidy approved by Cabinet for the NBS Kharif-2022 (from April 1 to September 30) will be Rs 60,939.23 crore, including support for indigenous fertiliser (SSP) through freight subsidy and additional support for indigenous manufacturing and imports of DAP.

The increase in the international prices of Di-ammonium phosphate (DAP) and its raw materials have been primarily absorbed by the Centre.

The Centre has decided to provide subsidy of Rs 2,501 per bag on DAP instead of existing subsidy of Rs 1,650 per bag, or a 50 per cent increase over the last year's subsidy rates.

The increase in the prices of DAP and its raw material is in the range of around 80 per cent that will help farmers to receive notified P&K fertilisers on subsidised, affordable, and reasonable rates and support the agriculture sector.

The subsidy would be released to fertiliser companies as per approved rates so that they can make available fertilisers to farmers at an affordable price than it would have been otherwise.