The Indian government plans to allocate nearly $19 billion in its federal Budget to compensate fertiliser companies who sell their products at lower than market prices to farmers, reported Bloomberg-Quint.
In the Budget due on February 1, the finance ministry has set aside 1.4 trillion rupees ($18.8 billion) for fertiliser subsidies, up from 1.3 trillion rupees in the year ending March 31. A final decision has not been made yet, and discussions are still ongoing, the report added.
Moneycontrol could not independently verify the report.
Notably, nearly 60 percent of India’s 1.4 billion population depends on farming directly or indirectly for their livelihood and their support is key for winning elections. The increased spending, hence, comes ahead of crucial local polls and amid efforts by the ruling Bharatiya Janata Party (BJP) to win over farmers after facing massive protests for over a year.
Explained: What are the three farm laws and what made them controversial?
Over the last couple years, farmers were protesting against the government's introduction of three farm laws. According to farm unions, these laws would have left farmers vulnerable to big companies and destroyed their livelihoods.
However, after months of insisting that the reforms would benefit farmers, Prime Minister Narendra Modi announced on November 19 that the government would repeal the disputed farm laws. A bill to cancel the reforms was officially passed in parliament on 30 November.
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