New Delhi, Oct 14 (IANS): The Cabinet Committee on Economic Affairs (CCEA) on Thursday announced that the increased prices of Phosphatic and Potassic (P&K) fertilizers approved earlier shall be rolled over for the whole of 2021-22.

The increased prices, vide notification dated May 20 this year, would be applicable from October 1 till March 31, 2022, the CCEA, chaired by Prime Minister Narendra Modi, decided.

"The increased international prices of Diammonium phosphate (DAP) have been absorbed by the Union Government," a release from the Minister of Chemicals and Fertilizers said.

The Union Government has decided to increase the subsidy by Rs 438 per bag of DAP as a special one time package so that farmers can get DAP at the same price.

The increased international prices of raw materials for production of three most consumed NPK grades (10:26:26, 20:20:0:13 and 12:32:16) have been absorbed by the Centre by increasing subsidy by Rs 100 per bag on these NPK grades as a special one time package so that farmers can get these fertilizers at affordable prices.

The Centre has brought Potash Derived from Molasses (PDM) under Nutrient Based Subsidy (NBS) scheme for the first time since its inception in 2010 to give a push to its manufacturing by Sugar Mills as a byproduct. This Fertilizer is known as PDM-0:0:14.5:0.

This move is expected to reduce India's dependence on 100 per cent import of more than 42 lakh metric tonnes (LMT) of Mineral based Potash, i.e., MOP which costs around Rs 7,160 crore annually.

This decision will not only improve the income level of sugarcane growers and sugar mills but also offer Rs 73 subsidy per 50 kg bag being sold @ Rs 600-800 by fertilizer companies to farmers.

It is expected that the Union Government will spend Rs 156 crore (approx.) annually as subsidy on the PDM and save a foreign exchange of Rs 562 crore, the release said.