Budget 2023: Finance Minister fired scissors on fertilizer subsidy, reduced allocation by 22 percent
The Center had kept a budget of Rs 1.05 lakh crore for fertilizer subsidy in FY23.
The allocation was increased to Rs 2.25 lakh crore amidst the increase in the prices of fertilizers.
The government had spent Rs 1.5 lakh crore on fertilizer subsidy in 2021-22.
New Delhi. Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) has made a provision of Rs 1.75 lakh crore for Fertilizer Subsidy this time in the budget (Budget 2023) to make fertilizers available to the farmers at a cheaper price. Fertilizer subsidy is estimated to increase to Rs 2,25,220.16 crore during the current financial year. This means that the fertilizer subsidy has been cut by 22 per cent in the budget. During the current financial year, the Center has decided to increase the subsidy on urea as well as phosphatic and potash fertilizers in view of the sharp rise in global prices amid the Russia-Ukraine conflict, to ensure that farmers get the fertilizer at a lower cost. Keep meeting
The Center had budgeted Rs 1.05 lakh crore for fertilizer subsidy in FY23, but increased the allocation to Rs 2.25 lakh crore amid a hike in fertilizer prices. The government had spent Rs 1.5 lakh crore on fertilizer subsidy in 2021-22. Government does not allow fertilizer companies to increase the retail price. It compensates the losses faced by the companies by giving subsidy. In this way, farmers are not affected by the increased prices of fertilizers and they continue to get fertilizers for agriculture at an affordable price.
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Prices increased due to supply disruption
Russia’s invasion of Ukraine disrupted the supply of fertilizers such as potash and phosphate. This increased the price of these fertilizers in the international market. India is among the largest importer of fertilizers. Farmers should not be affected by the increased prices, so the government increased the budget allocation for fertilizer subsidy to Rs 2.25 lakh crore in the current financial year. During this period, subsidy on urea has increased from Rs 1,00,988.13 crore to Rs 1,54,097.93 crore, while subsidy on Phosphatic and Potassic (P&K) fertilizers has increased from Rs 52,769.97 crore to Rs 71,122.23 crore.
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Urea, DAP and Potash are used more
Farmers in India use more Urea Potash and Di Ammonium Phosphate (DAP) for farming. Of these, urea fertilizer is used the most. This is because urea is applied several times before and after sowing in wheat, paddy, cotton and vegetable crops.
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Tags: Agriculture, Budget 2023, business news in hindi, farmer, FM Nirmala Sitharaman, subsidies
FIRST PUBLISHED : February 01, 2023, 20:37 IST