The Cabinet Committee on Economic Affairs (CCEA) has approved for continuation of Nutrient Based Subsidy (NBS) Scheme and City Compost Scheme beyond 12th Five Year plan till 2019-20. The proposal was forwarded by Department of Fertilizers.
The total expenditure for continuation of both schemes till 2019-20 will be Rs. 61,972 crore. The expenditure will be on actual basis since national roll out of DBT entails 100% payment of subsidy to fertilizer companies on sale of fertilizers to farmers at subsidized rates.
The subsidy on Phosphatic and Potassic (P&K) fertilizers and Market Development Assistant (MDA) on City Compost will be provided on subsidy rates approved by CCEA on annual basis. The continuation of both schemes will ensure that adequate quantity of P&K is made available to farmers at statutory controlled price.
Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers and importers. The subsidy on P&K fertilizers is being governed by NBS Scheme which was launched in 2010.Its objectives are to foster balanced use of fertilizers to improve soil health and reduce government outgo on fertiliser support (subsidy).
Similarly, MDA is being governed by City Compost Scheme which was launched in 2016. City Compost Scheme aims to convert all organic waste generated in cities into compost or biogas and market the compost with the help of fertiliser companies to benefit farmers.