Subsidy on DAP hiked to record Rs 1,200/bag to keep prices steady SECTIONS Last Updated: May 20, 2021, 07:41 AM IST Share Synopsis In a major pro-farmer decision, the Centre on Wednesday hiked the subsidy on DAP fertiliser by 140 per cent, costing the exchequer an additional Rs 14,775 crore, in a bid to ensure the soil nutrient is available to farmers at old rates despite a sharp rise in global prices. AFP The government has decided to increase the subsidy for diammonium phosphate (DAP) fertiliser to Rs 1,200 a bag of 50 kg from Rs 500. This will help farmers continue to get DAP at the existing rate of Rs 1,200 a bag, despite a jump in its actual price due to higher raw material cost.