Although the arrival of southwest monsoon has makes the farm sector looks rosy, but however the government is not able to meet up the growing subsidy demand on fertilizers. After the centre decides to ban on 27 fertilizers, the manufacturers of these chemicals, especially urea, are in deep trouble.
If we look at the subsidy structure, the year 2020-21 began with subsidy dues of ₹48,000 crores.
As per the business line reports, the Centre reduced the amount in February contrary to the expectations of an increase in allocation in the Budget for fertilizer subsidy to meet the pending dues.
It was ₹71,309 crore vs. ₹79,996 crores in the previous year, say reports.
Satish Chander, Director General, Fertiliser Association of India, urges the government to release the pending subsidy payments to relieve the industry from working capital stress. The industry association is asking for additional allocation of ₹50,000 crore besides the amount provided in the Budget (₹71,309 crore).
As per reports, about ₹75,000-80,000 crore is the required amount for fertilizer subsidy. In the Union Budget, the Finance Minister does provide for that amount. However, that amount is still not completed yet when the requirement is growing higher each year.
