The Center on Thursday said it has fixed subsidy for potash extracted from molasses (PDM) for the first time under nutrient-based subsidy. This initiative of the government is expected to reduce the country’s dependence on the mineral based potash.
The Ministry of Fertilizers has said in a statement that this decision will increase the income of sugarcane growing farmers. At the same time there will be saving of foreign exchange and dependence on imports for fertilizers is expected to be reduced.
Subsidy of Rs 73 will be available on one bag
The government will give a subsidy of Rs 73 to farmers on 50 kg bags of PDM sold by fertilizer companies for Rs 600-800. The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved this proposal in its recent meeting.
According to the Ministry of Fertilizers, “It is expected that the central government will spend Rs 156 crore (approximately) annually on PDM as subsidy and will save foreign exchange of Rs 562 crore.” This will motivate sugar mills to make by-product ‘molasses’, from which potash can be obtained.
There will be less dependence on imports
The ministry said in a statement that this will increase the revenue of the mills and the income of the sugarcane growing farmers. In addition, it is expected to reduce India’s dependence on imports of more than 42 lakh tonnes of mineral-based Murate of Potash (MOP), which costs about Rs 7,160 crore annually, the statement said.
Till last year, the government was fixing subsidies under the Nutrient Based Subsidy (NBS) scheme for 22 varieties of fertilizers containing soil nutrients such as nitrogen (N), phosphate (P), potash (K) and sulfur (S). Was. However, in May this year, two complex fertilizers were included under NBS.
The government has increased the subsidy of Phosphatic (P) and Potassic (K) fertilizers from October 1 to March 31 of the current financial year, while the subsidy on Diammonium Phosphate (DAP) has been increased by Rs 438 per bag as a special one-time package. .
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