Explanation:

• The Cabinet Committee on Economic Affairs (CCEA) gave its approval for fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P and K) Fertilizers for the year 2020-21.
• 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 subsidy on the Phosphorus and Potassium will be provided on the subsidy rates approved by the CCEA to the fertilizer companies.
• Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f 01.04.2010.

Fertilizer Pricing in India

• In India currently urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.While the Phosphatic and Potassic fertilizes are decontrolled and are sold at indicative maximum retail prices (MRPs).
• Nutrient Based Subsidy (NBS) allows manufacturers, marketers, and importers to fix the Maximum Retail Price (MRP) of Phosphatic and Potassic (P&K) fertilizers at reasonable levels.