India plans $19 billion fertilizer subsidy to placate angry farmers
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The increased spending comes ahead of crucial local elections and as the ruling Bhartiya Janata Party tries to win back farmers after massive protests against new laws that have since been repealed.
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India plans a $19 billion fertilizer subsidy to placate angry farmers.
According to experts, India is planning to allocate nearly $19 billion in the federal budget to compensate fertilizer companies for selling their products to farmers at prices lower than those in the market.
The Finance Ministry has budgeted 1.4 trillion rupees ($18.8 billion) for fertilizer subsidies in the budget year ending February 1, up from 1.3 trillion rupees in the year ending March 31, due to higher costs of raw material, according to people who requested anonymity. Discussions continue, and no final decision has been made.
The increased spending comes ahead of crucial local elections and as the ruling Bhartiya Janata Party tries to win back farmers after massive protests against new laws that have since been repealed. Nearly 60% of India's 1.4 billion people rely on farming for a living, either directly or indirectly, and their support is critical for winning elections.
A spokesperson for the Finance Ministry was not immediately available for comment.
Despite the protests, the government increased fertilizer subsidies significantly in the current year after allocating nearly 800 billion rupees in the February 2021 budget.
