Increased demand for urea from farmers after good monsoons: FM elaborates on need for additional spending
GS3Economy · S&T · Environment · Security· MSP, procurement, PDS & food security· Prelims·
Why in news
Finance Minister Nirmala Sitharaman informed the Lok Sabha that good monsoons and a prospect for an additional crop have increased urea demand, necessitating a request for additional spending of ₹1.32 lakh crore.
Background
The government plans to spend ₹18,525.1 crore on fertilizers to ensure adequate domestic production and imports. The Finance Minister assured that there is currently no urea shortage and a buffer exists for both Kharif and Rabi seasons.
Facts for Prelims
- FactThe government's planned expenditure on fertilizers is ₹18,525.1 crore.
- FactThe government requested an additional spending of ₹1.32 lakh crore to meet increased urea demand.
- FactUrea buffer is maintained for both Kharif and Rabi seasons.
For Mains
Q. Discuss the challenges in maintaining fertilizer supply chains and the fiscal implications of meeting rising agricultural demand in India.
Dimensions to cover in your answer
- Fiscal pressure: Balancing high fertilizer subsidies with fiscal deficit targets
- Supply chain dynamics: Balancing domestic production capacity against import reliance for urea
- Climate-linked demand: Managing fertilizer requirements amidst erratic monsoon patterns
Keywords: Fiscal deficit · Fertilizer subsidy · Agricultural demand · Buffer stock · Domestic production
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