Government takes historic pro-farmer decision of hiking fertilizer subsidy | Daily Current Affairs 2021

Government takes historic pro-farmer decision of hiking fertilizer subsidy

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Fertilizer Subsidy

In a major pro-farmer decision, the Government recently took a historic decision of hiking fertilizer subsidy.


  • The decision to hike the subsidy for Di-ammonium Phosphate (DAP) fertilizer from Rs. 500 per bag to Rs. 1200 per bag, which is an increase of 140% was taken at a high-level meeting chaired by Prime Minister Narendra Modi.
  • It was discussed that the price of fertilizers is undergoing an increase due to the rising prices of phosphoric acid, ammonia, etc. internationally.
  • Therefore, despite the rise in international market prices of DAP, it has been decided to continue selling it at the older price of Rs 1,200 per bag in a bid to ensure the soil nutrient is available to farmers at old rates despite a sharp rise in global prices.
  • Recently, the international prices of phosphoric acid, ammonia etc. used in DAP have gone up by 60% to 70%. So the actual price of a DAP bag is now Rs 2400, which could be sold by Fertilizer companies at Rs 1900 after considering a subsidy of Rs 500.
  • With the recent decisions, farmers will continue to get a DAP bag for Rs 1200.
  • Note: After urea, Di-ammonium Phosphate (DAP) is the most widely used fertilizer in the country.
  • The central government has decided to bear all the burden of price hikes.

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