Govt approves proposal Nutrient Based Subsidy and Inland Vessel Bill | Daily Current Affairs 2021

Govt approves proposal Nutrient Based Subsidy and Inland Vessel Bill

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The Union Cabinet under the chairmanship of Prime Minister Narendra Modi gave its approval for nutrient based subsidy and Inland Vessel Bill.

Highlights:

Among other key decisions, the Cabinet has also approved higher nutrient-based subsidy rates for phosphatic and potassic fertilizer for 2021-22.

This was announced by Mansukh Laxmanbhai Mandaviya, the Union Minister of State for Ports, Shipping and Waterways and Union Minister of State for Chemical and Fertilizers, along with Prakash Javadekar, Minister of Environment, Forest and Climate Change.

The subsidy is released to fertilizer companies as per NBS rates so that they can make available fertilizers to farmers at affordable price.

Nutrient Based Subsidy Rates:

The Union Cabinet approved the proposal of the Department of Fertilizers for fixation of ‘Nutrient Based Subsidy Rates’ for Phosphatic and Potassic (P&K) Fertilizers for the year 2021-22.

This historic decision by the Modi Government for the farmers seeks to benefit the farmers by providing fertilizer at a reasonable price amid the pandemic..

The Government provides Rs 900 subsidy on every packet of Urea.

The government also hiked subsidy by Rs 700 per bag of Complex fertilizers like di-ammonia phosphate (DAP).

From now, every bag of DAP would be priced at Rs 2,400.

For this, the government would spend an additional Rs 14,000 crore on increase subsidy support.

Prior to taking this decision, the government in May increased its share of subsidy for DAP by 140 per cent from Rs 500 to Rs 1,200 per bag.

With this, the government rolled back the steep 58 percent hike in prices announced by companies since April.

Background:
• The NBS (Nutrient Based Subsidy Scheme) programme for fertilizer was initiated in 2010.
• Under this scheme, the fixed amount of subsidy on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers except for Urea, based on the nutrients like Nitrogen, Phosphorous, Sulphur, and Potassium and micronutrients contained in these fertilizers.
• These secondary nutrients are very important for the growth and development of crops.
• Apart from this, fertilizers which are fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy.
• Under this Policy, the subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government on an annual basis for each nutrient on a per kg basis.
• These rates are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country, etc.
• The scheme is being implemented by the Department of Fertilizers.
• Urea, in India, is the only controlled fertilizer and is sold at a statutory notified uniform sale price.

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