Govt raises subsidy on key fertilisers

The Centre on Wednesday raised the subsidy on

fertilisers ahead of the kharif or summer sown season by ₹14,775 crore to cushion prices following a sharp increase in international rates that have prompted domestic fertiliser firms to raise costs. Prices of some farm chemicals have risen sharply on account of costlier imports amid estimates that a normal monsoon would increase demand this year. The government hiked the subsidy on di-ammonium Phosphate (DAP), a key crop nutrient, by nearly 140%, from ₹500 a bag to ₹1,200. International prices of raw materials for some key crop nutrients have seen a jump of up to 70%. On May 17, HT reported that the Centre was considering an increase in subsidy following a meeting of Union fertiliser minister Sadananda Gowda and other Union ministers.