Centre Cuts Non-urea Fertiliser Subsidy

• 23 Apr 2020

Why in News

Recently, the Cabinet Committee on Economic Affairs (CCEA) has cut the subsidy for non-urea fertilizers.

• That is about 3% lower than the estimated expenditure on the nutrient based subsidies in 2019-20.

Key Points

• Reduced Prices:
  
  • Nitrogen (N) based fertilizers- Reduced to ₹18.78 per kg from ₹18.90 per kg.
  • Phosphorus (P) based fertilizers- Reduced to ₹14.88 per kg from ₹15.21 per kg.
  • Potash (K) based fertilizers- Reduced to ₹10.11 per kg from ₹11.12 per kg.
  • Sulphur (S) based fertilisers- Reduced to ₹2.37 per kg from ₹3.56 per kg.
• The CCEA has also approved the inclusion of ammonium phosphate [(NH₄)₃PO₄] (a complex fertiliser) under the nutrient-based subsidy (NBS) scheme.

Nutrient Based Subsidy Scheme

• It is being implemented from April 2010 by the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
• Under NBS, a fixed amount of subsidy decided on an annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers, except for Urea, based on the nutrient content present in them.
  
  • It is largely for secondary nutrients like N, P, K and S which are very important for crop growth and development..
• It aims to ensure the availability of fertilizers to farmers at an affordable price, as the retail prices of such non-urea fertilisers are decontrolled and set by manufacturers.

Cabinet Committee on Economic Affairs

• Chaired by the Prime Minister, CCEA lays down the priorities for public sector investment and considers specific proposals for investment of not less than specific levels as revised from time to time.
• It has a mandate to review economic trends on a continuous basis, as well as the problems and prospects, with a view to evolving a consistent and integrated economic policy framework for the country.
• It also directs and coordinates all policies and activities in the economic field including foreign investment that require policy decisions at the highest level.
• Apart from CCEA, there are seven other cabinet committees:
  
  • Appointments Committee of the Cabinet.
  • Cabinet Committee on Accommodation.
  • Cabinet Committee on Parliamentary Affairs.
  • Cabinet Committee on Political Affairs.
  • Cabinet Committee on Security.
  • Cabinet Committee on Investment and Growth.
  • Cabinet Committee on Employment & Skill Development.

Source: TH