Good News for Farmers: DAP Fertilizer to be Available at Old Prices, Major Decision by the Central Government

DAP

Krishi Dunia

• 02 Jan, 2025 11:30 AM IST ,
• Updated Thu, 02 Jan 2025 12:30 PM

The year 2025 has brought good news for farmers as the central government has made several decisions in their favor. The most significant decision is that despite rising international market prices, DAP fertilizer will continue to be available at the old rates.

Announcement of Subsidy on DAP Fertilizer:

The Union Cabinet has approved a subsidy of ₹3,850 crore for DAP fertilizer manufacturing companies. This subsidy will ensure that farmers can continue to purchase a 50 kg bag of DAP fertilizer at the previous price of ₹1,350.

Price Increase for DAP and Other Fertilizers Was Expected:

There were plans to increase the prices of DAP and other fertilizers starting January 1, 2025, including:

• DAP Fertilizer: The price of a 50 kg bag was expected to rise from ₹1,350 to ₹1,590.
• TSP (46%): The price of a 50 kg bag was set to rise from ₹1,300 to ₹1,350. However, the government has suspended these price hikes to ease the financial burden on farmers.

Highest Subsidy on Urea:

The government also provides a major subsidy on urea:

• The actual cost of a 45 kg bag of urea is ₹2,236.37, but it is made available to farmers for just ₹266.50.
• The government subsidizes ₹1,969.87 on each urea bag.

Update on NPK Fertilizer Prices:

No new decision has been made regarding the prices of NPK fertilizers. Earlier, it was decided that:

• NPK 10-26-26: The price of a 50 kg bag would increase from ₹1,470 to ₹1,725.
• NPK 12-32-16: The price of a 50 kg bag would rise from ₹1,470 to ₹1,725. The government will later decide whether to increase subsidies for these fertilizers.

Expansion of Crop Insurance Scheme:

The Crop Insurance Scheme and Weather-based Crop Insurance Scheme have been extended until 2025-26, providing farmers continued protection against weather-related risks and ensuring better financial stability for their crops:

• The crop insurance budget has been increased to ₹69,516 crore.
• Farmers will not face any penalties for failing to enroll in crop insurance.

Technological Improvements in Agriculture:

The government has approved a budget of ₹824.77 crore for technological advancements in agriculture, which includes:

• Automatic Weather Systems (AWS) will be installed at the block level.
• Automatic Rain Gauges (ARG) will be set up at the Panchayat level, aiming to enhance local weather monitoring and improve agricultural planning.

Conclusion; These decisions by the central government will significantly reduce the economic burden on farmers and contribute to increased agricultural production. These measures represent an important step toward making Indian agriculture more robust and sustainable.