STOCK MARKET BSE NSE

In a first, the government fixes subsidy for potash derived from molasses

The government will offer a subsidy of Rs 73 per 50 kg bag of PDM sold at Rs 600-800 by fertiliser companies to farmers, it said.

Published: 14th October 2021 02:57 PM  |   Last Updated: 14th October 2021 03:44 PM   |  A+A-

Money, Rupee, notes, Rs, 500, 1000, 50, rupee notes

For representational purpose. (Photo| Sindhu Chandrasekaran)

By PTI

NEW DELHI: The Centre on Thursday said it has fixed subsidy on potash derived from molasses (PDM) for the first time under the Nutrient Based Subsidy, a move expected to reduce the country's dependence on mineral-based potash.

The government will offer a subsidy of Rs 73 per 50 kg bag of PDM sold at Rs 600-800 by fertiliser companies to farmers, it said.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given a nod to this proposal in its recent meeting.

According to the Fertilizer Ministry, "It is expected that the Union Government will spend Rs 156 crores (approx.) annually as a subsidy on PDM and save a foreign exchange of Rs 562 crores".

This will give a push to sugar mills to manufacture the byproduct 'molasses' from which potash can be derived. This will boost the revenue of mills and the income of sugarcane growers, the ministry said in a statement.

Besides, it is expected to reduce India's dependence on 100 per cent import of more than 42 lakh tonnes of mineral-based Muriate of Potash (MOP), which cost around Rs 7,160 crore annually, statement said.

Till last year, the government was fixing the subsidy under the Nutrient Based Subsidy (NBS) scheme for 22 varieties of fertilisers having soil nutrients namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S).

However in May this year, two complex fertilisers were included under the NBS. The inclusion of PDM takes total variants of fertiliser to 25.

The government has also extended the increase in the subsidy of phosphatic (P) and potassic (K) fertiliser from October 1 till March 31 of this financial year, while enhanced subsidy on Diammonium phosphate (DAP) by Rs 438 per bag as a special one-time package.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp