Cabinet Approves Rs 3,850 Crore Special Subsidy for DAP Fertilizer
In its first cabinet meeting of 2025, the government approved a one-time special package worth Rs 3,850 crore to subsidize Di-Ammonium Phosphate (DAP) fertilizer. This decision underscores the government’s commitment to supporting the agricultural sector by addressing rising input costs for farmers.
Focus on Agricultural Support
The subsidy aims to mitigate the financial burden on farmers by maintaining affordable prices for DAP, one of the most widely used fertilizers in India. Over recent years, the global surge in raw material costs has pushed up the prices of fertilizers, impacting Indian farmers. This special package is expected to stabilize the market and ensure continued availability of DAP at reasonable rates.
Union Ministers highlighted the importance of this measure, stating that it aligns with the government’s broader agenda to boost agricultural productivity and income. The package also reflects the government’s proactive approach toward tackling challenges faced by the agricultural community.
Increasing Fertilizer Availability
The subsidy is part of the government’s ongoing efforts to ensure sufficient fertilizer supplies across the country. With the upcoming rabi season, such measures are deemed critical to meeting farmers’ needs and ensuring a robust crop yield.
The Ministry of Chemicals and Fertilizers will oversee the implementation of the package, ensuring timely delivery of subsidized DAP to farmers. Additionally, the government is exploring long-term solutions to reduce dependency on imports by encouraging domestic production of fertilizers.
A Step Toward Agricultural Sustainability
Experts believe that this move will have a significant positive impact on the agricultural economy. However, they also stress the need for structural reforms in the fertilizer sector to ensure sustainable growth. Initiatives such as promoting organic fertilizers and innovative farming methods are also being discussed to complement such subsidies.
This one-time package demonstrates the government’s resolve to prioritize farmers’ welfare and strengthen the backbone of the Indian economy—agriculture.
