Akhil Bharatiya Kisan Sabha on Thursday said the Union Cabinet’s decision to increase the special subsidy on di-ammonium phosphate (DAP) fertilizer will increase the profits of companies instead of protecting the interests of farmers. “All India Kisan Sabha (AIKS) believes that the government’s decision to increase the special subsidy on di-ammonium phosphate will increase the profits of companies instead of protecting the interests of farmers,” the farmers’ organization said in a statement on Thursday. AIKS said the price of urea has been statutorily fixed at Rs 266.50 per 45 kg bag since November 2012, but the prices of Muriate of Potash (MOP) It has increased from Rs 4,455 per tonne in 2009-10 to Rs 34,644 per tonne in August, 2023.
DAP prices have increased significantly
“The price of di-ammonium phosphate has increased from Rs 9,350 in 2009-10 to Rs 27,000 per tonne in 2023 (August),” the organization said. On the other hand, there has been a huge cut of Rs 87,339 crore in fertilizer subsidy in the last three years.” According to the statement, ”The (actual) fertilizer subsidy in the Union Budget for the financial year 2022-23 was Rs 2,51,339 crore. Whereas in the budget of 2023-24 (revised), the expenditure under this head was only Rs 1,88,894 crore. This was Rs 62,445 crore less than in 2022-23. The fertilizer subsidy in the budget estimate for 2024-25 is Rs 1,64,000 crore, which means this is also Rs 24,894 crore less than the previous financial year.
low domestic production
AIKS said that over the past three decades, domestic production has fallen short of demand for all fertilizers and India has become increasingly dependent on imports. We are heavily dependent on imports of P&K (Phosphate and Potash) based fertilizers to meet our requirements. “The share of imports in the total supply of fertilizers ranges from 60 per cent for DAP to 100 per cent for MOP,” the farmers body said. This has made India’s agricultural production and food security vulnerable.
Profit margin of fertilizer companies increased
Citing various studies, the statement claimed that the profit margin of fertilizer companies could increase by 36 percent in 2022. And this is the highest since the global crisis of 2007-08. It also said that the crisis has increased due to the fall in the exchange rate of the rupee. Also there is a huge shortage in fertilizer availability. It is noteworthy that the government on Wednesday decided to extend the additional subsidy beyond December 31, 2024 to deliver DAP fertilizer to farmers at the price of Rs 1,350 per bag. This will put a burden of up to Rs 3,850 crore on the government exchequer. Last year, the central government had announced a one-time special package of Rs 2,625 crore on di-ammonium phosphate at the rate of Rs 3,500 per tonne from April 1 to December 31, 2024. This package was in addition to the Nutrient-Based Subsidy (NBS) fixed by the government on non-urea nutrients. This decision has been taken to ensure continuous availability of DAP to farmers at affordable prices.
(With inputs from PTI/Language)
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