CCEA approves schemes for farmers; Rs 3,68,676 crore committed for urea subsidy for three years

New Delhi [India], June 29 : The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a package of innovative schemes for farmers with a total outlay of Rs 3,70,128.7 crore.

The schemes are focused at overall well-being and economic betterment of farmers by promoting sustainable agriculture, an official release said, adding that the initiatives will boost farmers' income, strengthen natural and organic farming, rejuvenate soil productivity, and ensure food security.

The CCEA approved continuation of Urea Subsidy Scheme to ensure constant availability of urea to the farmers at the same price of Rs 242/ 45 kg bag excluding taxes and neam coating charges.

Out of the approved package, Rs 3,68,676.7 crore have been committed for urea subsidy for three years (2022-23 to 2024-25). This is apart from recently approved nutrient-based subsidy of Rs 38,000 crore for Kharif season for 2023-24.

"The farmers need not spend extra for purchase of urea, and this will help moderate their input costs. At present, the MRP of urea is Rs.242 per 45 kg bag of urea (exclusive of charges towards neem coating and taxes as applicable), whereas the actual cost of the bag comes around Rs. 2200," the release said.

The scheme is financed by the Centre through budgetary support. The continuation of Urea Subsidy scheme will also maximize indigenous production of urea to reach self-sufficiency levels, the release said.

Due to ever-changing geopolitical situation and increased raw material prices, fertilizer prices have been increasing multifold globally over the years. The release said the Centre has protected farmers from steep fertilizer price rise by increasing the fertilizer subsidy.

"In its endeavour to safeguard our farmers, Government of India has increased Fertilizer subsidy from Rs. 73,067 crore in 2014-15 to Rs. 2,54,799 crore in 2022-23. By 2025-26, eight Nano urea plants with production capacity of 44 Crore bottles equaling to 195 LMT of conventional urea will be commissioned."

Nano fertilizer releases nutrients in a controlled manner contributing to higher nutrient use efficiency and while costing less to the farmers,the release said.

Setting up and revival of 6 urea production units at Chambal Ferti ltd. - Kota Rajasthan, Matix ltd. Panagarh West Bengal, Ramagundam-Telangana, Gorakhpur-UP, Sindri-Jharkhand and Barauni-Bihar since 2018 is helping to make the country atmanirbhar in terms of urea production and availability, it said.

Indigenous production of urea has increased from 225 LMT during 2014-15 to 250 LMT during 2021-22. In 2022-23, production capacity has increased to 284 LMT.

"These along with Nano Urea Plants will reduce India's current import dependency in urea and finally make the country self-sufficient by 2025- 26," the release said.

The budget had announced that PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother - Earth (PMPRANAM) will be launched to incentivize states to promote alternate fertilizers and balanced use of chemical fertilizers.

The release said Rs 1451.84 crore have been approved for Market Development Assistance (MDA) for promoting Organic Fertilizers from Gobardhan Plants

The package approved on Wednesday also consists of innovative incentive mechanism for the restoration, nourishment, and betterment of the mother earth. Market Development Assistance (MDA) scheme in the form of Rs 1500 per MT to support marketing of organic fertilizers.

Another initiative of the package is that the Sulphur coated Urea (Urea Gold) is being introduced in the country for the first time.

"It is more economical and efficient than the currently used Neem coated urea. It will address Sulphur deficiency for the soil in the country. It will also save input costs for the farmers and also raise incomes for farmers with enhanced production and productivity," the release said.

About one lakh Pradhan Mantri Kisan Samruddhi Kendras (PMKSKs) have already come up in the country. For the convenience of farmers, the farm inputs are being provided as a one-stop solution for all needs of farmers, the release said.