Earlier in July 2024, the Cabinet approved a one-time Special Package on DAP to ensure availability of DAP at affordable price to farmers till Dec 31, 2024. 

• The current extension will apply from Jan 01, 2025 until further orders. 

About DAP

• It is one of the most widely used phosphorus fertilizer and a valuable source of both Phosphorus (P) and Nitrogen (N).
  • Phosphorus is essential for root development, flowering, and seed production, etc. 
• It is made by reacting phosphoric acid with ammonia under controlled conditions.

Fertilizer subsidy in India

• It is provided to fertilizer manufacturers, importers, farmers by the Government to ensure affordable input cost, boost agriculture productivity, etc. Some of them are:
  • Direct Benefit Transfer in Fertilizers: 100% subsidy on various fertilizer grades is released to the fertilizer companies, based on actual sales by Aadhar authentication.
  • Urea Subsidy: It is provided to the farmers at a statutorily notified Maximum Retail Price (MRP). 
    • Difference between the delivered cost of urea at farm gate and net market realization is given as a subsidy to the urea manufacturer/importer.
  • Nutrient Based Subsidy Policy: For Phosphatic and Potassic (P&K) Fertilizers, provides a fixed amount of subsidy on annual/semi-annual basis based on the nutrient content.