Urea is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of Urea is Rs. 242 per bag (exclusive of charges towards neem coating and taxes as applicable) and the MRP of 50 kg bag of Urea is Rs. 268 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of fertilizers at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India.
As far as Phosphatic and Potassic (P&K) fertilizers are concerned, Government is implementing Nutrient Based Subsidy (NBS) Scheme w.e.f 1.4.2010. Under the said scheme, a fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers depending upon its nutrient content. This subsidy is given by Goverment of India to the P&K fertilizer companies which are therefore able to provide P&K fertilizers to the farmers at a subsidized MRP, which is lower than it would have been. Accordingly, farmers across the country who are procuring fertilizers at MRP, is availing the benefit of subsidy.
Source;PIB
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