New Delhi/UNI: The union cabinet on Wednesday approved subsidy worth Rs 22,303 crore on Phosphatic & Potassic (P&K) fertilizers for the Rabi season 2023-24 to ensure that farmers get fertilizers at affordable rates despite uptrend in international market.

The cabinet, chaired by Prime Minister Narendra Modi, cleared the Nutrient Based Subsidy (NBS) rates in view of recent trends in the international prices of fertilizers and inputs.

Accordingly, DAP will be available for Rs 1,350 per bag, as per the old rates while the NPK will be available at the price of Rs 1,470 per bag.

"From 2021 itself, the central government has been fixing subsidy rates in a way that our farmers are not affected by the rise in fertilizer prices internationally. This is done to ensure that farmers continue to get fertilizers at concessional rates. In the upcoming Rabi season (2023-24), an additional subsidy of Rs 45 per tonne would be provided on DAP.

"At this rate, farmers would get DAP at the old rate of Rs 1,350 per bag," Information and Broadcasting (I&B) Minister Anurag Thakur said while briefing the media on Cabinet decisions.

"Similarly, NPK would be provided at the old rate of Rs 1,470 per bag and SSP at Rs 500 per bag. There will be no increase in it and farmers won't need to pay even a single rupee more.

"The MOP would be made available at Rs 1,655 per bag, lower than the old rate of Rs 1,700 per bag. There will be no increase in price of urea and in fact MOP will cost Rs 45 per bag less," he said.

The cabinet decision would ensure availability of fertilizers to farmers at subsidized, affordable and reasonable prices.

The government is making available 25 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by the NBS Scheme with effect from April, 2010.

"In accordance with its farmer friendly approach, the Government is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices.

"In view of the recent trends in the international prices of fertilizers & inputs i.e. Urea, DAP, MOP and Sulphur, Government has decided to approve the NBS rates for Rabi 2023-24 effective from 01.10.23 to 31.03.24 on Phosphatic and Potassic (P&K) fertilizers," an official statement said.

The cabinet in its meeting today also approved a Memorandum of Cooperation (MoC) between India and Japan on Japan-India Semiconductor Supply Chain Partnership.

The MoC intends to strengthen cooperation between India and Japan towards enhancement of the semiconductor supply chain, recognizing the importance of semiconductors for the advancement of industries and digital technologies.

The cabinet Committee on Economic Affairs (CCEA) also met and approved inclusion of Jamrani Dam Multipurpose Project of Uttarakhand under Pradhan Mantri Krishi Sinchayee Yojana-Accelerated Irrigation Benefit Programme.