Nutrient Based Subsidy

Relevance: Prelims: Polity: Governance

Why in news?

• The Cabinet Committee on Economic Affairs, CCEA today gave its approval for fixation of Nutrient Based Subsidy, NBS rates for Phosphatic and Potassic (P and K) Fertilizers for the year 2020-21.

Key highlights:

• The approved rates for NBS will be 18 rupees 78 paise per kg for Nitrogen, 14 rupees 88 paise per kg for Phosphorus, 10 rupees 11 paise per kg for Potash and 2 rupees 37 paise per kg for Sulphur.

• The CCEA also approved the inclusion of a complex fertilizer namely Ammonium Phosphate under the NBS Scheme.

• The expected expenditure for the release of subsidy on Phosphorus and Potassium Fertilizers during 2020-21 will be over 22 thousand 186 crore rupees.

• The subsidy on the Phosphorus and Potassium will be provided on the subsidy rates approved by the CCEA to the fertilizer companies.