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Govt Shields Farmers for Now, But ₹41,000 Cr Burden Raises Long-Term Concerns
Anytime News Network | Pooja Srivastava
At a press conference in Lucknow, Union Agriculture Minister Shivraj Singh Chouhan announced that the government is absorbing the burden of rising global fertilizer prices to protect farmers. However, the move—backed by an additional ₹41,000 crore subsidy—has sparked concerns about its long-term sustainability and economic impact.
While farmers are currently receiving urea at ₹266 per bag and DAP at ₹1,350, experts warn that these prices are artificially maintained through heavy government spending. With global fertilizer prices fluctuating due to geopolitical and supply chain factors, maintaining such subsidies could strain public finances in the future.
The minister emphasized that the government is shielding farmers from inflationary pressures. However, critics argue that this approach may only offer short-term relief while postponing structural reforms needed in the agriculture sector.
Economists point out that excessive reliance on subsidies can distort usage patterns. Cheap urea often leads to overuse, which negatively impacts soil health and reduces long-term agricultural productivity. Despite the government’s push for balanced fertilizer use and natural farming, implementation on the ground remains inconsistent.
Concerns have also been raised about whether such large fiscal commitments could limit investments in other critical sectors like irrigation, infrastructure, and agricultural research.
Farmer groups, meanwhile, argue that subsidies alone cannot solve deeper issues such as market access, fair pricing, and rising input costs. They stress the need for a holistic approach rather than temporary financial cushioning.
