About:

• Nutrient Based Subsidy (NBS) programme for fertilizer was initiated in the year 2010. Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers based on its nutrient content. 
• The scheme aims at ensuring that sufficient quantity of P&K is at the farmer’s disposal at statutory controlled prices, so that the agricultural growth can be sustained and balanced nutrient application to the soil can be ensured.
• It aims at improving the agricultural productivity, promoting the growth of the indigenous fertilizers industry and also reducing the burden of Subsidy.
• The scheme is being implemented by the Department of Fertilizers under the Ministry of Chemicals and Fertilizers (not under the Ministry of agriculture and farmers welfare).

Significance:

• In a country like India, where around 65 per cent of the population depends on agriculture for their livelihood, the Government has a major role in ensuring the availability of agri-inputs including fertilisers at affordable prices. At the same time, balanced fertilisation is necessary to enhance farm productivity
• Government is making available Urea and 22 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is being governed by the NBS Scheme. 

Why in the news?

• The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2021-22(till the present season).

Reference:

1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1727528