NEW DELHI: The government is likely to consider tomorrow a proposal to fix subsidy on non-urea phosphatic and potassic (P&K) fertilisers for 2013-14 fiscal.
Under the nutrient-based subsidy (NBS) regime introduced on April 1, 2010, maximum retail price of 22 varieties of P&K fertilisers have been freed. But, the government reimburses companies the difference in cost of selling the soil nutrients at lower price to farmers.
"Cabinet is likely to consider tomorrow fixing the new NBS rates for P&K fertiliser for this fiscal," an official in the Fertiliser Ministry said.
The ministry is expected to reduce the subsidy on DAP by Rs 2,000 per tonne to Rs 12,350 a tonne and that on MoP by Rs 2,700 per tonne to Rs 11,700 a tonne for the 2013-14 fiscal, another official said.
In 2012-13 fiscal, the government fixed subsidy on DAP at Rs 14,350 per tonne and on MoP at Rs 14,400 a tonne. In the previous fiscal, the subsidy on DAP and MoP fiscal was at Rs 19,763 and Rs 16,054 per tonne, respectively.
India imported 78.64 lakh tonne urea till February, as against 78.34 lakh tonne in the entire 2011-12 fiscal. During April-February period of 2012-13 fiscal, import of DAP stood at 57.79 lakh tonne, and that of MOP at 18.14 lakh tonne.
On average, India consumes 30 million tonne urea and around 25-26 million tonne DAP, MoP and complex fertilisers annually.