First Cabinet meeting of 2025: Govt approves one-time special package of up to Rs 3,850 crore for DAP fertiliser

In its first meeting of 2025, the Cabinet chaired by Prime Minister Narendra Modi on January 1 introduced key measures aimed for the welfare farmers. The Cabinet approved a special package for companies manufacturing DAP fertiliser. This initiative includes financial assistance in addition to the existing subsidies for DAP producers. 

“Ours is a Government fully committed to furthering welfare of farmers. We are proud of all our farmer sisters and brothers who work hard to feed our nation. The first Cabinet of 2025 is dedicated to enhancing prosperity for our farmers. I am glad that key decisions have been taken in this regard,” Prime Minister Narendra Modi said.

Union Minister Ashwini Vaishnaw in a briefing said the Cabinet approved the extension of one-time special package on DAP (Di-Ammonium Phosphate) beyond NBS subsidy for the period from 01.01.2025 to 31.12.2025 to ensure sustainable availability of DAP at affordable prices to farmers. Budgetary requirement for the move will be Rs 3,850 crore (approximately). 

The Cabinet decision will ensure that farmers will continue to get Di-ammonium Phosphate (DAP) fertiliser at Rs 1,350 per bag of 50 kg.

"The first Cabinet meeting of 2025 has been dedicated to the farmers by the Prime Minister. In this first meeting, there were extensive discussions related to farmers, covering various aspects, and the decisions taken today are entirely focused on the welfare of farmers,” Vaishnaw said. 

“The biggest decision taken today was the enhancement of the ‘Pradhan Mantri Fasal Bima Yojana’, which has made a significant difference in the lives of farmers. Its allocation has been increased to Rs 69,515 crore. Given the positive experience so far, the utilisation of the scheme, the response received, and the real changes seen in farmers' lives due to this scheme, the allocation has been increased,” he said. 

Di-ammonium phosphate (DAP) is a widely used chemical fertiliser essential for enhancing soil fertility and crop yield. India imports a significant portion of its DAP fertiliser requirements from countries like China, Morocco and Saudi Arabia. 

Rising raw material prices in the international market often lead to higher costs. To alleviate this burden, the government provides subsidies to make fertilisers more affordable for farmers. Twenty eight grades of P&K fertilizers are made available to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by NBS Scheme w.e.f 01.04.2010.

The Cabinet also approved continuation of the Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of Rs 69,515.71 crore from 2021-22 to 2025-26. The decision will help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26. 

In addition to the same, the Union Cabinet has also approved creation of Fund for Innovation and Technology (FIAT) with a corpus of Rs 824.77 crore for large scale technology infusion in the implementation of the scheme leading to increasing transparency and claim calculation and settlement.