What is NBS Scheme?

Question

Asked: January 2, 20212021-01-02T12:22:37+05:30 2021-01-02T12:22:37+05:30In: UPSC PRELIMS

What is Nutrient Based Subsidy scheme?

Sagar · Accepted Answer · 2021-01-03T12:17:54+05:30

The Nutrient Based Subsidy (NBS) Policy has been introduced by the Fertilizer Department, Ministry of Chemicals & Fertilizers since 2010.

Under NBS, for each grade of subsidized Phosphatic & Potassic (P&K) fertilizers, with the exception of urea, a fixed amount of subsidy is given, determined on an annual basis, based on its nutrient content.
The government is currently making fertilizers, namely urea and 21 grades of P&K fertilizers, available to farmers through producers/importers at subsidized rates.
The government sets the maximum retail price in the case of urea (MRP).
Manufacturers are reimbursed for the difference between the manufacturing cost and the MRP.
The government also approved the inclusion of ammonium phosphate, a complex fertilizer, under the nutrient-based subsidy scheme.