Budget: Govt plans Rs 1.4-trn fertiliser subsidy for farmers, says report

The increased spending comes ahead of crucial assembly polls and amid efforts by the ruling BJP to win over farmers after facing massive protests against new laws that have since been scrapped

India is likely to earmark nearly $19 billion in the federal budget to compensate fertiliser companies for selling their products to farmers at lower than market prices, according to people with knowledge of the matter.

The finance ministry has penciled in Rs 1.4 trillion ($18.8 billion) as fertiliser subsidy in the budget due Feb. 1, up from Rs 1.3 trillion in the year ending March 31, due to higher raw material costs, the people said, asking not to be identified as the information is not public. Discussions are still going on and a final decision is yet to be taken.