Cabinet extends one-time special package on DAP at ₹3,500 per tonne beyond NBS subsidy
The extension from 1 January 2025 till further orders will cost up to about ₹3,850 crore.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi on 1 January 2025 approved the extension of the one-time special package on Di-Ammonium Phosphate (DAP) at ₹3,500 per tonne, over and above the Nutrient Based Subsidy (NBS), for the period from 1 January 2025 till further orders. The DAP special package extension has a tentative budgetary requirement of up to about ₹3,850 crore, taking the total special package for DAP since April 2024 to more than ₹6,475 crore. The Cabinet had approved the first such package in July 2024 for 1 April to 31 December 2024 at an estimated ₹2,625 crore, to keep DAP available to farmers at affordable prices.
Key facts
- Decision
- 1 January 2025, Union Cabinet
- Package
- ₹3,500 per MT on DAP, beyond NBS subsidy
- Period
- 1 January 2025 till further orders
- Cost
- Up to about ₹3,850 crore
- Earlier package
- July 2024 approval for 1 April–31 December 2024, ~₹2,625 crore
- Total since April 2024
- More than ₹6,475 crore
- NBS
- Governs subsidy on 28 grades of P&K fertilisers since 1 April 2010
Practice MCQs 3 questions
At what rate per tonne did the Union Cabinet on 1 January 2025 extend the one-time special package on DAP beyond the NBS subsidy?
Show answer
Correct answer: A — ₹3,500 per tonne
PIB (Cabinet): the Cabinet approved extension of the one-time special package on DAP beyond the NBS subsidy @ ₹3,500 per MT from 01.01.2025 till further orders.
What is the approximate financial implication of the DAP special package extension approved on 1 January 2025?
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Correct answer: B — Up to ₹3,850 crore
PIB (Cabinet): the tentative budgetary requirement is approximately up to ₹3,850 crore; ₹2,625 crore was the earlier package and ₹6,475 crore is the total since April 2024.
Consider the following statements about fertiliser subsidy as stated in the Cabinet release of 1 January 2025: 1. Subsidy on P&K fertilisers has been governed by the NBS scheme since 1 April 2010. 2. The first one-time special package on DAP covered 1 April to 31 December 2024. 3. The new extension of the special package is limited to the Rabi 2024-25 season only. Which of the statements given above are correct?
Show answer
Correct answer: C — 1 and 2 only
PIB (Cabinet): NBS has governed P&K subsidy w.e.f. 01.04.2010 and the July 2024 package covered 01.04.2024 to 31.12.2024; the extension runs from 01.01.2025 till further orders, so statement 3 is wrong.