The government has launched a campaign to curb the illegal diversion of agriculture-grade urea to industrial units, an Economic Times (ET) report said. Urea meant for agricultural use being illegally diverted to industries has resulted in subsidy leakage and has become a prime concern for the government.
To curb this leakage, the government has prepared fertiliser flying squads. These squads have conducted 370 surprise inspections in 15 states to bust sub-standard mixture units, single superphosphate (SSP) units and nitrogen, phosphorus, potassium (NPK) units, the report said.
In the course of their inspections, the squads have registered 30 FIRs for the diversion of urea. In doing so, they have confiscated 70,000 bags of urea.
Additionally, around 11 individuals have been arrested under the Prevention of Black Marketing and Maintenance of Supplies Act, ET reported.
It should be noted that the central government provides high subsidies costing the exchequer Rs 2500 per bag of urea. The farmers get 45kg urea bags at a price of Rs 266, according to the report.
Illegal diversion of this highly subsidised urea meant for farmers results in a shortage of urea for agriculture.
According to a press release titled "Year-end review of the department of fertilizers-2022," the Union Cabinet approved Rs 51,875 crore to support farmers through fertiliser subsidies. This ensured that the volatility in fertiliser prices due to the war in Ukraine is primarily absorbed by the government.