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Fertilizer subsidy during 2012-13 estimated to be 11% less at Rs 65,592 crores

New Delhi: December 4,2012

 

            Government has launched various schemes to provide financial assistance to farmers on purchase of inputs like fertilizers, seeds etc. Fertilizer subsidy is provided through two schemes: New Pricing Scheme (NPS-III) for Urea and Nutrient Based Subsidy Policy for Phosphatic and Potassic (P&K) fertilizers.  Under NPS-III Urea is being provided to farmers at subsidized MRP of Rs. 5360 per MT.  The difference in delivered cost of Urea and its MRP is provided as subsidy by the Government.  Under NBS Policy, a fixed subsidy on the basis of nutrient content of P&K fertilisers is announced on annual basis.  Under this Policy at present 21 P&K fertilisers are provided at subsidised rates to farmers. The Fertiliser subsidy is provided to all farmers of all states in the form of subsidized MPR of fertilisers.  The amount of subsidy disbursed during the last three years and the first year of the 12th Fiver Year Plan is given below:-

 

Period

Amount of subsidy disbursed

(Rs. in Crore)

P&K

Urea

All Fertilisers

2009-10

39452.06

24580.23

64032.29

2010-11

41500.00

24336.68

65836.68

2011-12

36107.94

37683.00

73790.94

2012-13

(BE)

28576.12

37016.01

65592.13

 

Financial assistance/subsidy for seed production and distribution is provided under various existing schemes/programmes implemented by states covering foodgrains, pulses, oilseeds, cotton, jute & mesta, etc.  The scale of assistance extended varies with different levels of ceiling linked to costs under various schemes for different crops.

 

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