Cabinet Decision: Modi government’s gift to farmers on New Year, announcement to increase subsidy on DAP
New Delhi| On the first day of the new year, Modi government has given a big gift to the farmers. Giving information about the decisions of the cabinet, Union Minister Ashwini Vaishnav has announced to increase the subsidy on DAP. The Union Minister informed that the Cabinet has approved a one-time special package of up to Rs 3,850 crore for DAP fertilizer. With this, a 50 kg bag of DAP will continue to be available for Rs 1,350 only. PM Narendra Modi said that the first decision of the New Year is dedicated to crores of farmer brothers and sisters.
Last year, the central government had announced a one-time special package of Rs 2,625 crore on di-ammonium phosphate (DAP) at Rs 3,500 per tone for April 1 to December 31, 2024. This package was in addition to the government-decided nutrient-based subsidy (NBS) on non-urea nutrients.
The Union Cabinet, which met on Wednesday under the chairmanship of Prime Minister Narendra Modi, approved the proposal to extend this special package for a period from January 1, 2025 till further orders. It provides for a subsidy on DAP at the rate of Rs 3,500 per tonne.
According to an official statement, this decision has been taken to ensure continuous availability of DAP to farmers at affordable prices. A special package on DAP will be given in addition to nutrient-based subsidy to provide DAP fertilizers to farmers at affordable prices. Information and Broadcasting Minister Ashwini Vaishnav told reporters after the Cabinet meeting that farmers will continue to get DAP fertilizer at the rate of Rs 1,350 per sack and the additional burden on it will be borne by the central government.
A one-time special package of up to Rs 3,850 crore has been approved for ‘DAP, he said. He said DAP’s global market prices are volatile due to geopolitical concerns. The central government provides 28 types of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on these fertilizers is determined under the NBS scheme which is effective from April 1, 2010.
Extended period of insurance schemes
PM Crop Insurance Scheme and Restructured Weather Based Crop Insurance Scheme have been approved by the Cabinet to continue till 2025-26. From 2021-22 to 2025-26, the plan will have a total expenditure of 69,515.71 crore. The Cabinet has also approved the creation of a Fund for Innovation and Technology. The 824.77 crore Profile Fund will be used to finance technical initiatives under the scheme. This money will be spent on YES-TECH, WINDS, etc. as well as research and development. This will increase transparency and make claim calculation and settlement easier.
1 million tones of non-Basmati rice to be exported to Indonesia
Union Agriculture Minister Shivraj Singh Chouhan said the Cabinet has also approved export of 1 million tonnes of non Basmati rice to Indonesia through National Cooperative Export Limited (NCEL). This export will be done under an MoU between NCEL, Ministry of Cooperation and Indonesian Government.
