Consider the following statements about Nutrient Based Subsidy (NBS) scheme:
(1) The NBS scheme provides fixed per-kg subsidy rates for N, P, K, and S in non-urea fertilizers.
(2) Freight assistance is also provided.
Which of the above statements is/are correct?
Show answer & explanation
Correct answer: C
Explanation
The answer is Both 1 and 2.
Explanation:
- Statement (1) is correct: Under the NBS scheme, the government fixes a specific subsidy rate on a per-kilogram basis for the nutrients present in P&K (Phosphorus and Potassium) fertilizers—namely Nitrogen (N), Phosphorus (P), Potassium (K), and Sulfur (S). This scheme primarily applies to non-urea fertilizers (such as DAP, MOP, and NPK).
- Statement (2) is correct: The government also provides a Freight Subsidy to ensure the smooth supply of these fertilizers, thereby ensuring that fertilizers are available at uniform prices even in the remote regions of the country.
Additional Points:
- Inception: This scheme has been effective since April 1, 2010.
- Objective: Its primary objective is to promote the balanced use of fertilizers, as the excessive use of urea alone (due to its lower cost) was leading to a deterioration in soil fertility.
- Exception for Urea: Note that urea remains under statutory control and falls outside the purview of the NBS scheme. The price of urea is determined by the government.
Potential Questions and Answers:
Question: Which ministry administers the NBS scheme?
Answer: The Ministry of Chemicals and Fertilizers.
Question: Is a subsidy also provided for micronutrients?
Answer: Yes, under the NBS scheme, there is a provision for an additional subsidy on fertilizers containing micronutrients such as Boron and Zinc.