Government to continue Nutrient Based Subsidy and City Compost Scheme till 2019-20: Rao Inderjit Singh

Minister of State for Planning (IC) and Chemicals & Fertilizers, Shri Rao Inderjit Singh, in a written reply to a questionon continuation of Nutrient Based Subsidy (NBS) and city compost scheme till 2019-20, in Lok Sabha today, informed that Government has decided to continue NBS and City Compost Scheme till 2019-20. As per approval of Cabinet Committee on Economic Affairs (CCEA), the total expenditure likely to be incurred for continuation of NBS and City Compost Scheme is Rs. 61,792 crores or subsidy expenditure for the scheme on actual basis since national rollout of DBT entails 100% payment of subsidy to fertilizer companies on sale of fertilizers to farmers at subsidized rates.

Objectives of continuation of NBS Scheme are as under:

i.          To promote balanced use of fertilizers.

ii.         To reduce subsidy burden on the Government.

iii.        To improve availability of fertilizers to farmers.

iv.        To encourage competition among fertilizer companies


Objectives of continuation of City Compost Schemes are as under:

i.          To support SWACHH BHARAT MISSION.

ii.         To provide City Compost at subsidized rates to farmers.

Shri Singh informed that the Government has implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers.  Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content.  Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is monitored by the Government.

The Government of India approved a policy on promotion of City Compost which has been duly notified by the Department of Fertilizers on 10.2.2016 wherein Market Development Assistance (MDA) of Rs. 1500/MT in the form of subsidy has been provided for scaling up production and consumption of city compost.

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