The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval for fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) Fertilizers for the year 2020-21. The approved rates for NBS are as under: -

Per Kg Subsidy rates (in Rs.)
N	P	K	S
18.789	14.888	10.116	2.374

The CCEA also approved the inclusion of a complex fertilizer namely Ammonium Phosphate (NP 14:28:0:0) under the NBS Scheme.

The expected expenditure for release of subsidy on P&K Fertilizers during 2020-21 will be ₹ 22,186.55 crore.

The subsidy on the P&K will be provided on the subsidy rates approved by the CCEA to the fertilizer companies.

Background:

Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f 01.04.2010. In accordance to its farmer friendly approach, the Govt. is committed to ensure the availability of P&K fertilizers to the farmers on affordable price. The subsidy would be released to fertilizer companies as per above rates so that they can make available fertilizers to farmers at a cheaper price than it would have been otherwise.

Nutrient based subsidy rates for P&K fertilizers set, enabling subsidised supply and adding ammonium phosphate to the scheme. Fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for 2020-21 sets per kilogram subsidy amounts for N, P, K and S to be paid to fertilizer companies; subsidies will be released to manufacturers/importers on these approved rates so they can supply subsidised P&K fertilizer grades to farmers. The NBS coverage is expanded to include the complex fertilizer Ammonium Phosphate (NP 14:28:0:0), and an expected expenditure ceiling for P&K subsidy release for the year is identified.