The government has kept the subsidy rates for complex fertilizers -- Diammonium Phosphate (DAP) and Muriate of Potash (MOP) -- unchanged for the current fiscal. The centre has fixed the rates at the same rate as that of last year’s level of Rs 12,350 for DAP and Rs 9,300 per tonne for MOP.
The government decided to continue the existing subsidy rates for 22 grades of P&K fertilizers under the NBS policy for the current year. Separate subsidy for boron and zinc coated fertilizers have also been continued.
The government had decontrolled the phosphatic and potassic (P&K) (non-urea) fertilizers in April 2010 by giving freedom to the manufacturers to fix Maximum Retail Price (MRP). The centre offers a fixed nutrient based subsidy (NBS) on P&K nutrients to keep domestic rates lower.