Part of the larger Aatmanirbhar Bharat 3.0 stimulus package
Close on the heels of agri reform Bills, the Centre has provided another fillip to the Indian agriculture sector by announcing Rs 65,000 crore fertilizer subsidy to farmers.
As part of the larger economic stimulus package of Aatmanirbhar Bharat 3.0, this subsidy of fertilizers will directly help increase the supply of the same, ensuring adequate fertilizer availability in the upcoming crop seasons, as per a statement issued by Nirmala Sitharaman, Finance Minister of India. 140 million farmers will be positively impacted by this subsidy.
The growth in usage of fertilizer has been estimated at 17. 8 per cent over the actual usage in 2019-20 of 581 lakh metric tonnes. This increase has been attributed to favorable monssons and the subsequent increase im sown area. The fertilizer use is expected to be around 673 lakh metric tonnes in 2020-21, as opposed to the 499 lakh metric tonnes in 2016-17.
Another additional stimulus of Rs 10,200 crore has been set aside for capital and industrial expenditure on defence equipment, industrial infrastructures and green energy.
