Urea Subsidy
The Central Government of India fully funds the urea subsidy through financial assistance as part of the department’s Central Sector Scheme (CSS). Urea is provided to farmers at a legally set price in order to support sustained agricultural development and encourage balanced nutrient application.
- As a way to close the gap between the estimated demand and domestic urea production in the nation, it also contains imported urea subsidies. Additionally, it contains transport subsidies for the nationwide transportation of urea.
- The sustainability of the urea subsidy program will guarantee payment of the subsidy to urea producers, resulting in the quick availability of urea to farmers.
- The major component of the fertilizer subsidy is the difference between the delivery cost of fertilizers at the farm gate and the MRP that the farmer must pay.
- Chemical fertilizers have played a critical part in making India self-sufficient in food grain production and are a critical input for Indian agriculture’s growth.
- The Central Government provides it to the producer and importer of fertilizer.
- Implementing DBT in the fertilizer industry will stop breaches and reduce the diversion of fertilizers to non-agricultural uses.