the federal government has enhanced the subsidy on di-ammonium phosphate or DAP fertilisers as a way to maintain the price tag for farmers at the existing amount of 1200 each luggage, after an evaluation meeting fertiliser prices chaired by Prime Minister Narendra Modi on Wednesday.

The movement, that entails increasing the subsidy from $500 per bag to $1200 each bag of DAP, will raise India’s yearly fertiliser subsidy charge of roughly $80,000 crore by $14,775 crore as subsidy at the Kharif season, an announcement said.

While international costs of malic acid and ammonia utilized for producing DAP have risen by 60{4298251308cd288b939effe95b4c029e39df70679b4587e1449e43e4b08368d8}-70 percent, the true price of an DAP tote has become $2,400, ” the federal government said. With the current subsidy, the purchase price would need to become pegged at $1900 a luggage, however it’s been kept at $1200 each tote.

Back in April, India’s biggest fertiliser manufacturer IFFCO’d announced a 58.33{4298251308cd288b939effe95b4c029e39df70679b4587e1449e43e4b08368d8} rise in DAP prices, but said farmers may continue to acquire older stocks in current costs and the increased prices were’only undependable’ and employed for printing on bags because of dispatching newly produced fertilisers.

“The PM stressed that farmers should buy fertilisers at older rates inspite of the global increase in prices and said that the administration is devoted to the welfare of farmers and also will require all efforts to make sure that farmers would not need to handle the brunt of both price-rise,” the official statement said, calling this unprecedented subsidy increase.