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Govt Caps Fertiliser Prices to Protect Farmers from Global Market Swings

The government has maintained the Maximum Retail Price of DAP at Rs 1,350 per 50 kg bag for the Rabi 2025-26 season, shielding farmers from global price volatility. A special provision of Rs 3,500 per metric tonne covers additional costs and ensures manufacturers a reasonable return. National availability data shows sufficient stocks of key phosphatic and potassic fertilisers against current requirements. The policy leverages the iFMS for real-time monitoring and promotes balanced nutrient use through a revised subsidy framework.

Key Points: Govt Caps Fertiliser Prices, Ensures Supply for Rabi Season

  • DAP price capped at Rs 1,350 per bag
  • Special provision of Rs 3,500/MT for costs
  • Adequate national stock of key fertilisers
  • Real-time monitoring via iFMS platform
  • Revised NBS policy promotes balanced nutrition
2 min read

Govt caps fertiliser prices to shield farmers from global volatility

Government maintains stable DAP price at Rs 1,350/bag, ensures adequate fertiliser availability, and promotes balanced soil nutrition for farmers.

"This move ensures that despite shifts in global prices, the financial burden does not shift to the farmer - Anupriya Patel"

New Delhi, March 10

The Union Government is shielding Indian farmers from international market fluctuations by ensuring the availability of key fertilisers at affordable rates for the ongoing Rabi 2025-26 season, the Parliament was informed on Tuesday.

In a comprehensive update on the fertiliser sector, the Ministry of Chemicals and Fertilisers announced that the Maximum Retail Price (MRP) of di-ammonium phosphate (DAP) has been maintained at a stable Rs 1,350 per 50 kg bag.

To achieve this price stability for DAP, the government has implemented special provisions of Rs 3,500 per metric tonne (MT) to cover other costs, including logistics from factory to farm gate, GST components, and a guaranteed 4 per cent reasonable return for manufacturers. This move ensures that despite shifts in global prices, the financial burden does not shift to the farmer, Minister of State for Chemicals and Fertilisers Anupriya Patel told the Rajya Sabha in a written reply to a question.

As of March 5, the availability of phosphatic and potassic (P&K) fertilisers has remained adequate across the country. Nationwide data indicate that the availability of DAP stands at 71.89 lakh metric tonnes (LMT) against a pro-rata requirement of 51.38 LMT, while the availability of MOP is recorded at 18.17 LMT against a requirement of 14.18 LMT. In the case of NPKS, the total availability is at 108.39 LMT, which significantly exceeds the pro-rata requirement of 76.48 LMT.

The Ministry utilises the integrated Fertiliser Management System (iFMS), an online web-based platform, to monitor the movement of all subsidised fertilisers in real-time. This is supported by close coordination with the Ministry of Railways to prioritise rake movement and ensure timely evacuation of stocks to various states.

Promoting balanced nutrition under the revised Nutrient Based Subsidy (NBS) framework, the government has incorporated additional fertiliser grades such as 10:26:26 and 12:32:16. By providing subsidies based on the specific nitrogen (N), phosphorus (P), and Potash (K) content, the NBS policy empowers farmers to choose nutrients based on specific crop and soil requirements, the minister said.

The average retail prices for other key grades (per 50 kg bag) for the 2025-26 period are: NPK 10-26-26: Rs 1,814.82, NPK 12-32-16: Rs 1,711.87 and muriate of potash (MOP): Rs 1,710.54

This strategic framework not only facilitates balanced nutrient application but also aims to reduce the excessive reliance on urea, thereby preserving soil health, the minister said.

- IANS

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Reader Comments

S
Shreya B
Good move, but the real test is on the ground. Last season, there were shortages in our district despite 'adequate' national numbers. The iFMS tracking is a good idea, but it needs to be transparent so farmers can also check availability. Focus on last-mile delivery!
A
Aman W
Promoting balanced nutrition with new NPK grades is the most important part of this news. Overuse of urea has ruined our family's land over the years. If subsidies help farmers switch to soil-specific fertilisers, it's a win for future generations. Jai Kisan!
P
Priyanka N
The subsidy burden on the exchequer must be huge. While protecting farmers is essential, I hope there is equal focus on promoting organic farming and reducing dependency on chemical fertilisers in the long run. Soil health cannot be ignored.
K
Karthik V
Coordination with Railways is key! Delays in rake movement during peak season can derail the whole plan. Glad to see they are thinking about logistics. Now, ensure the local dealers don't create artificial shortages or charge above MRP.
M
Michael C
Interesting policy. From an economic perspective, insulating a large sector from global volatility through subsidies is a significant fiscal commitment. The data on availability exceeding requirement is promising. Hope the system is efficient and minimizes leakage.

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