Government Extends DAP Fertiliser Subsidy Amid Global Market Volatility

The government has extended the subsidy on di-ammonium phosphate (DAP) fertiliser beyond December 2024 to maintain its retail price at Rs 1,350 per 50 kg bag. This decision aims to mitigate the impact of volatile global market prices on farmers and could cost up to Rs 3,850 crore.

The Indian government has announced the extension of subsidies on di-ammonium phosphate (DAP) fertilisers beyond the original end date of December 31, 2024. This move is designed to maintain the retail price of this essential fertiliser at Rs 1,350 per 50 kg bag, shielding farmers from fluctuating global market prices.

Originally, a one-time special package was approved last year, amounting to Rs 3,500 per tonne, and was meant to cover the period from April 2024 to December 2024, at a financial implication of Rs 2,625 crore. With this new extension, a further commitment of up to Rs 3,850 crore will be shouldered by the central government.

Prime Minister Narendra Modi chaired the Union Cabinet meeting that approved this decision, emphasizing the importance of stable fertiliser prices for sustainable agricultural practices. With global DAP prices highly volatile due to geopolitical tensions, the subsidy aims to ease the burden on farmers, ensuring that they have access to affordable DAP fertiliser for Kharif and Rabi seasons.

(With inputs from agencies.)