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6,000 Crore Rs Subsidy Is Not Reaching The Right Hands Due To Black Marketing Of Urea

Urea Subsidy Scheme : The central government has started nationwide...

Urea Subsidy Scheme : The central government has started nationwide action to check black marketing of 1 million tonnes of agro-grade urea every year for industrial use. In this case, the official says that about Rs 6,000 crore subsidy does not reach the right hands due to black marketing. In the last two and a half months, the government has identified cases of ‘leakage’ of subsidy worth Rs 100 crore through various covert operations.

subsidy from the center
The center provides urea to the farmers at a highly subsidized rate of Rs 266 per bag (45 kg). Due to this, the government has to bear the subsidy expenditure of more than Rs 2,700 per bag on urea.

Import of 2 lakh tonnes of urea
According to sources, the annual requirement of technical grade urea is about 13-14 lakh tonnes for industrial use. Out of which only 1.5 lakh tonnes are produced in the country. The industry imports only 2 lakh tonnes against the required level of over 10 lakh tonnes.

misuse of urea
Let us tell you that every year about one million tonnes of agriculture-grade urea is being misused or black-marketed in the country. Subsidized urea is mainly being given to industries. After this some quantity goes to neighboring countries. Due to this, the subsidy of about Rs 6,000 crore is not utilized properly.

This is how urea is used
Urea is used in various industries such as resin or glue, plywood, crockery, molding powder, cattle feed, dairy and industrial mining explosives. Agriculture-grade urea is neem-coated while technical-grade urea is not. The coating of neem is removed through some chemical process and then urea is used for industrial purposes.

100 crore subsidy going into wrong hands
A nationwide action against the defaulting units has been initiated by the Department of Fertilizers along with the states and various other central authorities. During the last two and a half months, information is being received about subsidies of more than Rs 100 crore going into the wrong hands through various covert operations.

Center calls for action
The Department of Fertilizers has constituted a special team of dedicated officers ‘Fertilizer Flying Squad’ for surprise inspection of units involved in movement, black marketing, hoarding and supply of sub-standard quality fertilizers. The Center has asked the states to take action, as fertilizer is an essential commodity.

GST evasion of 64.43 crores
In this action, the department has caught evasion of Goods and Services Tax (GST) worth Rs 64.43 crore by industrial grade urea suppliers. This information has been shared with the GST Department. So far Rs 5.14 crore has been recovered. Unaccounted stock of agricultural grade urea of ​​about 25,000 bags worth Rs 7.5 crore has been recovered. Under CGST Act, 2017 6 people have been arrested and sent to judicial custody. Further investigation is on.

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