India Plans $19 Billion Fertilizer Subsidy to Placate Angry Farmers
NDTV
India may earmark $19 billion in union budgetto compensate fertilizer entities for selling their products to farmers at less than market rates
India is likely to earmark nearly $19 billion in the union budget to compensate fertilizer companies for selling their products to farmers at lower than market prices, according to people with knowledge of the matter.
The finance ministry has penciled in 1.4 trillion rupees ($18.8 billion) as fertilizer subsidy in the budget due February 1, up from 1.3 trillion rupees in the year ending March 31, due to higher raw material costs, the people said, asking not to be identified as the information is not public. Discussions are still going on and a final decision is yet to be taken.
The increased spending comes ahead of crucial local polls and amid efforts by the ruling Bhartiya Janata Party to win over farmers after facing massive protests against new laws that have since been scrapped. Nearly 60 per cent percent of India's 1.4 billion population depends on farming directly or indirectly for their livelihood and their support is key for winning elections.
