INDIA. New Delhi: The Indian government is planning to allot about $19 billion in the union budget 2022-23, to reimburse fertilizer companies for selling their products to farmers at affordable & lower than market prices.
As per the reports, the finance department has defined about $18.8 billion (Rs.1.4 lakh crore) as fertilizer subsidy in the budget. The authorities are negotiating with this aspect & the decision will be proclaimed shortly.
Out of the 1.4 billion population of India, about 60% – 70% population directly or indirectly depends upon farming. The spending on farmers’ issues is going to play a huge role due to the upcoming state assembly elections of Uttar Pradesh, Punjab, Goa, Uttarakhand & Manipur. Also, after the enormous protest from farmers, the Indian government rescinded three much-discussed farm laws, in December 2021.
In the previous budget of the year 2020 – 21, the government penciled Rs. 80000 crores, for the fertilizer subsidy. (1 USD = Rs. 74.43 Indian Rupee)
What is Fertilizer Subsidy?
The notion of subsidy was introduced during the Green Revolution of the 1970s-80s, in India. The government intends to bound the prices of fertilizers, to maintain the satisfactory availability of fertilizers to farmers. Farmers buy fertilizers at MRPs below-market rates from the fertilizer companies. The subsidy goes to companies though the beneficiary is the farmer. From March 2018, a direct benefit transfer (DBT) system was introduced, for transparent dealings.
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