Good news for farmers: Union Cabinet releases fertilizer subsidy of Rs 24,400 Crore for Kharif season
The subsidy scheme will ensure availability of fertilizers to farmers at subsidized, affordable and reasonable prices.
New Delhi: Amid the ongoing farmers’ protests, the Union Cabinet has approved a subsidy scheme for farmers. It has submitted a proposal of Rs 24,420 crore for fixing the nutrient-based subsidy rates (NBS) for phosphatic and potassium-containing (P&K) fertilizers and inclusion of 3 new fertilizer grades under the NBS scheme for the Kharif season 2024 (April to September of this year ).
Notably, the scheme will ensure the availability of fertilizers to farmers at subsidized, affordable and reasonable prices, according to an official statement issued after the meeting. This will also result in rationalization of subsidies for P&K fertilizers in view of the recent trends in international prices of fertilizers and inputs.
How will it help farmers?
The inclusion of three new grades in the NBS will support the promotion of balanced soil health and provide alternatives for farmers to choose fertilizers enriched with micronutrients depending on soil needs, the statement said.
The subsidy on P&K fertilizers will be provided on the basis of approved rates for Kharif 2024 (applicable from April 1, 2024 to September 30, 2024) to ensure smooth availability of these fertilizers to the farmers at affordable prices. The government is making 25 types of P&K fertilizers available to farmers at subsidized prices through fertilizer manufacturers and importers to help them increase production and increase income.
Cabinet approves amendment to MMDR law
The Union Cabinet on Thursday approved the amendment in the MMDR Act to specify the royalty rate for 12 crucial and strategic minerals, an official statement said. A decision in this regard was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, the Ministry of Mines said in a statement.
“The Union Cabinet… approved the amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) for specifying the royalty rate in respect of 12 crucial and strategic minerals,” the statement said.
The twelve crucial and strategic minerals are beryllium, cadmium, cobalt, gallium, indium, rhenium, selenium, tantalum, tellurium, titanium, tungsten and vanadium. This completes the rationalization of royalty rates for all 24 critical and strategic minerals, the ministry said.
The government announced the royalty rate on March 15, 2022 for four crucial minerals, namely glauconite, potash, molybdenum and platinum group of minerals, and on October 12, 2023 for three crucial minerals, lithium, niobium and rare earth elements.
According to the statement, the Mines and Minerals (Development and Regulation) Amendment Act, 2023, which came into force on August 17, 2023, listed 24 critical and strategic minerals in Part D of the First Schedule of the MMDR Act. The amendment provided that mining leases and composite permits for these 24 minerals would be auctioned by the central government.
The approval for royalty rate specification will enable the Center to auction blocks for these twelve minerals for the first time in the country. The royalty rate on minerals is an important financial consideration for block auction bidders, the statement said.
(With input from agencies)