Russia Ukraine war: GoI incurred Rs 254798 Cr expenditure on fertilizers’ subsidy in 2022-23

Srinagar, Aug 4: The Union Ministry of Chemicals and Fertilizers on Friday stated that the Government of India (GoI) incurred expenditure worth Rs 254798.93 crores in 2022-23 on the fertilizers’ subsidy as compared to Rs 157640 in 2021-22, in wake of the Russia-Ukraine war.

The Minister of Chemicals and Fertilizers Dr. Mansukh Mandaviya in his written reply said that the GoI ensured availability of fertilizers at reasonable prices by increasing the quantum of subsidies while acknowledging that Russia-Ukraine war resulted in tight availability and increase in prices of fertilizers and its raw materials at global level.

“The Government of India also facilitated long term agreements and Joint Ventures (JVs) to ensure adequate supply of fertilizers to the farmers,” the Minister in his written reply said. The written reply reads that, Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP) wherein the MRP of 45kg bag of urea is Rs. 266 whereas for P&K fertilizers government has approved the revised rates of Nutrient Based Subsidy Scheme for Rabi 2022-23 and fresh rates for Kharif 2023.

“Accordingly, all farmers are being supplied fertilizers at subsidized rates. At present, the cost of urea in India is Rs. 5911 per MT. However, cost of urea (August, 2022) in Pakistan is Rs. 63,166 per MT, cost of urea (August, 2022) in China is Rs. 42,524 per MT and cost of Urea (October, 2022) in Bangladesh is Rs. 12,551 per MT,” the written reply reads.