The government has increased the subsidy on di-ammonium phosphate (DAP) fertiliser by 140 percent. Farmers will now get a subsidy of Rs 1,200 per 50-kilogram bag of DAP instead of the Rs 500 earlier. Kishor Rungta, CMD of FACT shared his views.

“Because of the increase in government price and with the increase in subsidy, we will be able to maintain the earlier MRP. So this is a good relief,” he said.

“We produce other fertilisers, we call it NPK. Right now the government of India has increased the subsidy for DAP, we are expecting the same percentage to be increased for NPK. Right now we don’t have DAP in our portfolio,” he added.

There won’t be much impact on the bottomline, he shared.

“Last year the government has cleared the entire subsidy. Now the government is clearing subsidy on a monthly basis. The company has got the subsidy for April,” he stated.

In terms of demand, he mentioned, “The monsoon is likely to be very good and we are expecting stable and good demand for all the fertilisers.”

For full interview, watch the accompanying video

(Edited by : Abhishek Jha)