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Big relief to farmers, fertilizer subsidy expected to be ₹ 2.5 lakh crore, know what FAI said

Fertilizer Subsidy 2022-23: Big news is coming out regarding the fertilizer subsidy given to Indian farmers. The central government is going to increase the scope of subsidy on fertilizers in the current financial year 2022-23. This year, this subsidy is expected to be increased from Rs 2.3 to 2.5 lakh crore.

At the same time, there can be a big decline of 25 percent in the next financial year. The Fertilizers Association of India (FAI) has presented some figures in this regard. In this, it is being told that how much the subsidy on fertilizers to the farmers of India can be increased.

what the fai said

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According to media reports, the Fertilizers Association of India (FAI) says that in 2023-24, the government’s subsidy may be reduced due to softening of fertilizer prices in the global market. FAI said that despite the government’s subsidy, the industries are getting very less margin. Along with this, due to increase in prices in the global market, there is increasing pressure on the retail price of fertilizers in the domestic market. Investment in this sector is decreasing rapidly. There is sufficient quantity of manure for Rabi season in the country and there is no shortage of fertilizers like Urea, DAP at present.

Increased prices of raw materials no pressure

FAI President KS Raju says that the increase in subsidy will provide relief to the farmers from the increased prices and they will not face the pressure of increased prices of fertilizers and raw materials in the global market. Fertilizers subsidy in the last financial year was Rs 162 lakh crore.

Expected to fall by 25 percent

FAI board member PS Gehlaut says that in 2023, there could be a big drop of 25 per cent in fertilizer subsidy. It will be about 65 thousand crore rupees as compared to the existing subsidy. The prices of raw materials and fertilizers are softening in the global market. It depends on the futures market itself.

what is the reason

The effect of continuous softening in the prices of fertilizers is being seen in the global market. In April 2021, the price of DAP was $ 555 per tonne, which increased to $ 945 in July 2022. Now it has fallen back to $722 in October. The price of phosphoric acid had gone up to $ 1718 per tonne in July 2022, which is currently at $ 1355 per tonne. On the other hand, the price of imported urea was $1,000 per tonne in December 2021, which has now reached $600 per tonne.

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