SF Prep Notes

Government calls DAP shortage reports misleading; MRP kept at ₹1,350 per 50 kg bag

On 23 October 2024, in India, the Department of Fertilizers called media reports of a DAP shortage hurting Rabi prospects misleading, saying the MRP of DAP has been kept at ₹1,350 per 50 kg bag since Covid times and subsidy has been raised.

Summary

On 23 October 2024, in India, the Department of Fertilizers said media reports of a Diammonium Phosphate (DAP) shortage hurting Rabi crop prospects were misleading. It said the MRP of DAP has been maintained at ₹1,350 per 50 kg bag since Covid times and the subsidy has not been reduced. Two Cabinet decisions increased support for Rabi 2024: a special package of ₹3,500 per tonne costing ₹2,625 crore, and linking subsidy to market prices. The total budgetary allocation for Rabi 2024-25 has been raised to ₹24,475 crore. Availability was affected partly by vessels taking the longer Cape of Good Hope route instead of the Red Sea.

Key facts

Date
23 Oct 2024
By
Department of Fertilizers
DAP MRP
₹1,350 per 50 kg bag (since Covid)
Special package
₹3,500 per tonne; ₹2,625 crore
Rabi 2024-25 allocation
₹24,475 crore
Supply factor
Ships routed via Cape of Good Hope instead of Red Sea

Practice MCQs 3 questions

Q1

As per the Department of Fertilizers (23 October 2024), the MRP of DAP has been maintained since Covid times at:

Show answer

Correct answer: C — ₹1,350 per 50 kg bag

PIB, 23 Oct 2024: the MRP of DAP has been maintained at Rs. 1350/- per 50 Kg bag since Covid times.

Q2 Advanced

What special package per tonne was provided for DAP procurement for Rabi 2024, as stated on 23 October 2024?

Show answer

Correct answer: A — ₹3,500 per tonne

PIB, 23 Oct 2024: Rs. 3500/- per MT as a special package costing Rs. 2625 crores has been provided to make the price sustainable for companies for procurement of DAP.

Q3 Advanced

What is the total budgetary allocation for fertilizer subsidy for Rabi 2024-25, as stated by the Department of Fertilizers on 23 October 2024?

Show answer

Correct answer: B — ₹24,475 crore

PIB, 23 Oct 2024: the total budgetary allocation for Rabi 2024-2025 has been increased to Rs. 24,475 crores.

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