NEW DELHI : The Narendra Modi government on Wednesday cleared a ₹22,186 crore subsidy for phosphorous and potassium fertilizers for the current fiscal, an annual exercise aimed at ensuring that fertilizers are available to farmers at an affordable price.
The subsidy component on retail price of fertilizers is announced at the beginning of the fiscal and subsequent changes in raw material cost, import price and currency fluctuations get reflected in the retail price.
The budget documents presented in Parliament on 1 February indicated that the revised subsidy estimate for FY20 for the two fertilizers alone was ₹26,335 crore.