The government has prepared a plan to give subsidy of Rs 43,403 crore on P&K Fertilizer. In this, there is a plan to give subsidy of Rs 26,602 crore on domestic P&K and Rs 16,827 crore on imported P&K.
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The Government of India is preparing to give big relief to the fertilizer companies as well as the farmers of the country. In the coming time, the government can announce additional subsidy to the fertilizer companies. According to the news of CNBC Awaaz, the Government of India has sought approval from the Parliament for giving additional subsidy on fertilizer. According to the news, the government has sought approval from the Parliament for an expenditure of Rs 58,430 crore to give additional relief on fertiliser. After getting approval from Parliament, fertilizers will become cheaper across the country.
Increase in subsidy will increase profits of fertilizer companies
According to the report, the government will give additional subsidy to the fertilizer companies, which will increase their profits. If profits increase, they will not increase the prices of their produce and farmers will not have to spend more money to buy fertilizers. Let us tell you that the prices of raw materials used in fertilizers have increased significantly in the international markets. When the government had announced to give subsidy on fertilizers in the budget, the difference between the prices which were at that time and the prices which are today has doubled.
58,430 crore to be spent for additional subsidy on P&K and urea
CNBC Awaaz report states that the government has prepared a plan to give subsidy of Rs 43,403 crore on P&K Fertilizer. In this, there is a plan to give subsidy of Rs 26,602 crore on domestic P&K and Rs 16,827 crore on imported P&K. Apart from this, 15 thousand crore rupees will be given on urea. In this way, the total expenditure of the proposed additional subsidy on P&K and urea is being Rs 58,430 crore. For this, the government has sought approval from the Parliament to complete the formalities. It will be released after getting approval from the Parliament.
Fertilizer companies were fed up with rising raw material prices
Let us tell you that all the companies making fertilizers were worried about the rapidly increasing cost and decreasing profits. Fertilizer companies say that the subsidy they are getting is only on the basis of old prices, whereas at present the price of raw materials used in making fertilizers has increased significantly. Therefore, there was a demand of the companies that the subsidy which is being given to them should be given on the basis of new prices so that their profits can increase and they can produce manure in an uninterrupted manner.
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