The Comptroller and Auditor General (CAG) on Friday criticised the government's fertiliser subsidy policy, saying despite huge increases in the subsidy, the production was negligible compared to the requirement.
In a performance audit of fertiliser subsidy tabled in Parliament on Friday, CAG said while it rose over 10 times from Rs 11,387 crore in 1998-99 to Rs 96,603 crore in 2008-09, total production rose just 11 per cent in that period. During the period, fertiliser requirement rose over 70 per cent, CAG said, adding fertiliser imports rose by nearly 236 percent. The production of urea rose a negligible three per cent in the same period. “We found the process of detailed assessment of fertiliser requirements was flawed,” the report said, adding despite the huge subsidy, there were numerous instances of either a shortage of fertilisers or their excess availability, leading to a mismatch between supply and demand.
“We also found several instances of diversion of fertilisers for non-agricultural purposes, as well as smuggling of fertilisers in border districts in eastern and northeastern states,” CAG said. The report also highlighted flaws in the subsidy chains.
