New Delhi: The government tends to ask almost $ 19 billion in the budget to compensate for fertilizer companies to sell their products to farmers at lower prices, according to people with knowledge of this problem.
The Ministry of Finance has pencils 1.4 lakh crore ($ 18.8 billion) as a fertilizer subsidy in the february 1 fee budget, up from Rs 1.3 lakh crore in the year ended March 31, because of higher raw material costs, People said, asking not to do so identified as that information is not public.
The discussion is still ongoing and the final decision has not been taken.
Increased expenditure appeared in front of important polls and amid BJP efforts in power to win farmers after facing massive protests against newly canceled laws.
Nearly 60% of 1.4 billion Indian populations depend on agriculture directly or indirectly for their livelihoods and their support is the key to winning the election.
Ministry of Finance spokesman is not immediately available for comments.
The government has substantially raised fertilizer subsidies in the year to protest after allocating almost 80,000 crore rs in the budget launched in February 2021.