Govt sees surge in subsidies, but no hit to growth
New Delhi, June 10 -- Food and fertiliser security remains the government's top priority even as subsidies on fuel and fertiliser may surge because of external factors, senior officials said on Tuesday, and added this would not impact India's growth momentum as the Union budget 2026-27 had factored in such eventualities in advance.
The department of fertilisers has sought a 100% increase in the fertiliser subsidy allocation to around Rs.3.42 lakh crore for 2026-27 - double the budget estimate of Rs.1.71 lakh crore - as global supply disruptions and price volatility from the West Asia conflict drive up import costs sharply. Alongside this, the government has absorbed approximately Rs.1.20 lakh crore in costs to shield consumers from steeper fuel price hikes by state-run oil marketing companies over 78 days, said one of the officials, who declined to be named.
The scale of the fertiliser cost surge is visible in per-unit terms. "We supply fertilisers to our farmers at around Rs.300 per bag while our import cost per bag has surged to approximately Rs.3,000. Per bag subsidy is now about Rs.2,700," the official said, adding that the government was ramping up domestic production capacity to reduce import dependence....
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