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The Union Cabinet has revised the per kilogramme subsidy under the nutrient-based regime, lowering it for nitrogen, phosphorus, potassium, and sulphur for the October-March period compared to the April-September period. The cost to the Government is estimated at Rs 22,303 crore. The farmers will continue to receive urea at a highly subsidised price of Rs 266 per bag. The rates of complex fertilisers like DAP will be Rs 1,350 per bag, NPK of various grades will average Rs 1470 per bag, and MOP will be Rs 1,655 per bag. Notably, MOP rates were around Rs 1,700 per bag in the April-September period. The FY24 Budget had projected the subsidy expenditure on non-urea fertilisers at Rs 44,000 crore. In total, fertiliser subsidy (urea and non-urea) was estimated at Rs 175,099 crore. Of this, urea subsidy was estimated at around Rs 131,100 crore, while non-urea fertiliser subsidy was estimated at Rs 44,000 crore.
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