The government's fertiliser subsidy touched Rs 85,300 crore in the first nine months of the ongoing fiscal year, according to the Economic Survey. Domestic fertiliser production reached 28.5 million tonne during the April-December period of 2021-22.

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Out of the total fertiliser production, urea output was at 18.7 million tonne, Di Ammonium Phosphate (DAP) at 3 million tonne and complex fertilisers at 6.8 million tonne.

According to the Survey, total fertiliser subsidy reached Rs 85,300 crore during the nine-month period. Of this, Rs 49,800 crore subsidy was on urea and the balance Rs 35,500 crore on phosphatic and potassium (P&K) fertilisers.

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The government's fertiliser subsidy had touched a record Rs 1,38,500 crore in 2020-21. Much of the subsidy was spent on urea at Rs 99,500 crore followed by P&K fertilisers at Rs 39,000 crore.

The government is making available fertilisers, namely urea and different grades of P&K fertilisers to farmers at subsidised prices through manufacturers/ importers.

The subsidy on P&K fertilisers is being governed by a Nutrient Based Subsidy (NBS) scheme with effect from April 2010. In the case of urea, the Centre has fixed the maximum retail prices and reimburses the difference between the MRP and production cost in form of subsidy.

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(Edited by : Jomy Jos Pullokaran)