New Delhi, Jan 2 (PTI) All India Kisan Sabha (AIKS) on Thursday said the Union Cabinet's decision to extend special subsidy on di-ammonium phosphate (DAP) fertiliser would increase corporate profit rather than protect farmers' interests.

"The All India Kisan Sabha (AIKS) views the cabinet decision of the NDA3 Government to extend special subsidy on di-ammonium phosphate DAP as facilitating corporate profit rather than protecting farmers interests," AIKS said in a statement on Thursday.

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The AIKS said theP of Urea has been statutorily fixed at Rs 266.50 per 45-kg bag since November 2012, but the prices of Muriate of Potash (MoP) increased from Rs 4,455 per tonne in 2009-10 to Rs 34,644 per tonne in 2023 (August).

"The price of Di-ammonium Phosphate (DAP) increased from Rs 9,350 in 2009-10 to Rs 27,000 per tonne in 2023 (August). On the other hand, the fertiliser subsidy has been slashed substantially in the last three years to the tune of an accumulated sum of Rs 87,339 crore," the farmers' body said.

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"In the Union Budget 2022-23 (actuals) the fertiliser subsidy was Rs 2,51,339 crore and in the Budget 2023-24 (Revised) the expenditure made was only Rs 1,88,894 crore that was less by Rs 62,445 crore. As per the 2024-25 Budget estimate the fertiliser subsidy is Rs 1,64,000 crore means further less by Rs 24,894 crore," the AIKS said.

The AIKS said over the last three decades, domestic production has increasingly fallen short of demand for all fertilizers and India has become increasingly import-dependent, heavily reliant on the import of P&K based fertilizers to meet its requirements.

"The share of imports in total supply of fertilizers ranges from 60 per cent for DAP to 100 per cent for MoP. This has made India's agricultural production and food security vulnerable to the vagaries of international markets and geopolitical situations," the body said.

The AIKS added that the surge in prices is accentuated because of monopoly control of a few global corporations on mineral resources and fertilizer production, as about 84 per cent of the global supply of MoP comes from only seven companies and blamed "profiteering" by these global suppliers for the increase in price.

It claimed studies have shown that the profit margins of fertilizer companies went up to 36 per cent in 2022 and reported to have been the highest since the 2007-08 global crisis.

It also added that the depreciation of the rupee has added to the crisis and also said that there is a massive shortage in fertiliser availability.

"Though the government repeatedly denied there was any shortage, the official data and the experience of the farmers at the ground shows a substantial shortfall in the availability of the fertilizers associated with widespread black marketing," it added.

The government on Wednesday extended additional subsidy on di-ammonium phosphate (DAP) beyond December 31, 2024, to help maintain retail prices of this key fertiliser at Rs 1,350 per bag of 50 kg -- a move that could cost the exchequer up to Rs 3,850 crore.

Last year, the Centre announced a one-time special package on DAP at Rs 3,500 per tonne, valid from April 1, 2024, to December 31, 2024, with a financial implication of Rs 2,625 crore to keep prices under check. The package was over and above the nutrient-based subsidy (NBS) fixed by the government on non-urea nutrients.

The decision has been taken to "ensure sustainable availability of DAP at affordable prices to the farmers", an official statement said.

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