The government on Saturday decided to make changes to the existing nutrient based subsidy (NBS) policy to promote domestic production of phosphatic and potassic (P&K) fertilisers amid a sharp rise in global prices.

A decision was taken in a high-level meeting chaired by Union minister for chemicals and fertilisers Mansukh Mandaviya.

In the meeting, “...it was decided to continue support to the domestic industry for production of P&K fertilisers and propose additional provisions in the present NBS Policy to promote domestic production of P&K fertilisers in the country,” an official statement said.

This decision will help in utilising the unutilised domestic production capacity of these fertilisers and promote ‘Atmanirbhar Bharat’, it added.

Under the NBS policy being implemented since April 2010, a fixed amount of subsidy that is decided on an annual basis is provided on P&K fertilisers depending on their nutrient content.

Under this policy, maximum retail price (MRP) of P&K fertilisers is fixed by the fertiliser companies according to the market dynamics at reasonable levels which is monitored by the government.