In the midst of a sharp increase in global fertilizer prices, Finance Minister Nirmala Sitharaman announced on Saturday that the government will provide an additional fertilizer subsidy of Rs 1.10 lakh crore to farmers to help them cope with the price increase.
With this, the government's total fertilizer subsidy is expected to reach a new high of Rs 2.15 lakh crore in the current fiscal year 2022-23.
"Despite rising fertilizer prices around the world, we have shielded our farmers from such increases. In addition to the fertilizer subsidy of Rs 1.05 lakh crore included in the Budget, an additional amount of Rs 1.10 lakh crore is being provided to help our farmers " Sitharaman took to Twitter.
In the 2022-23 Budget, the fertilizer subsidy bill was estimated to be Rs.1.05 lakh crore. In 2021-22, it was Rs 1,62,132 crore.
Due to a sharp rise in global prices, Chemicals and Fertilizers Minister Mansukh Mandaviya recently stated that the total fertilizer subsidy bill in the current fiscal could be between Rs 2-2.5 lakh crore.
India imports urea, potassium, and phosphate fertilizers, and global fertilizer prices have risen as a result of the Russia-Ukraine conflict.
How do farmers get fertilizer subsidies?
The government has developed a programme called Direct Benefit Transfer systems in fertilizers. Farmers will receive the subsidy amount directly in their bank accounts for the purchase of fertilizers under this scheme. The government has taken an excellent initiative for farmers.
Who decides the price of fertilizer in India?
At the moment, urea is the only fertilizer whose pricing and distribution are statutorily controlled by the government. As a result, no one can sell urea for more than the government-specified MRP. The MRP for each fertilizer is indicative under the Concession Scheme.
