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Context:
What is fertiliser subsidy?
The only regulated Fertilizer Urea is the only fertilizer at present with pricing and distribution being controlled statutorily by the Government. The Central Govt. pays subsidy on urea to fertiliser manufacturers on the basis of cost of production at each plant and the units are required to sell the fertilizer at the government-set Maximum Retail Price (MRP). Thus, no one can sell urea above the MRP declared by the Govt. Under the Concession Scheme, the MRP for each fertilizer is indicative in nature. |
How is the subsidy paid and who gets it?
The Challenges of Subsidizing Fertilizer Use in India:
Steps taken:
Further reforms:
Solutions for Connecting Subsidies Directly with Farmers:
Farmer’s concerns
Way Ahead:
Virtual Account
Read: https://www.iasgyan.in/daily-current-affairs/nano-urea-and-urea-sector
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