Cabinet approval to continuation of ongoing urea subsidy scheme

Question: Recently, the Cabinet Committee on Economic Affairs approved the proposal of urea department for continuing the Urea Subsidy Scheme to upto which Year for an estimated expenditure of Rs. 1, 64,935 crore?
(a) From 2017 to 2019
(b) From 2017 to 2020
(c) From 2017 to 2021
(d) From 2017 to 2022
Answer- (b) 
Related Facts:

  • On March 14th, 2018, the Cabinet Committee on Economic Affairs, chaired by Prime Minister has approved the proposal of Department of Fertilizers to continue Urea Subsidy Scheme up to 2019-20 at a total estimated cost of Rs.1,64,935 crore and for disbursement of fertilizer subsidy.
  • This decision implies that there will be no increase in price of urea, till 2020.
  • Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers w.e.f 1stApril, 2017 and is wholly financed by the Government of India through Budgetary Support.
  • The continuation of Urea Subsidy Scheme will ensure the timely payment of subsidy to the urea manufacturers resulting in timely availability of urea to farmers.
  • Urea subsidy also includes Imported Urea subsidy which is directed towards import to bridge the gap between assessed demand and indigenous production of urea in the country.
  • It also includes freight subsidy for movement of urea across the country.
  • This is in continuation to farmer-friendly policies of the Central Government.
  • Earlier, 100% Neem Coated Urea was made mandatory in 2015.
  • It is noteworthy that Government had earlier notified New Urea Policy, 2015, with the objectives of maximizing indigenous urea production; promoting energy efficiency in urea production; and rationalizing subsidy burden on the government.
  • This led to the highest ever production of 245 LMT during 2015-16.
  • For sustained agricultural growth and to promote balanced nutrient application, urea is made available to farmers at statutorily controlled price, which at present is Rs. 5360/- per MT (exclusive of the Central/State Tax & other charges towards Neem coating).
  • At present, there are 31 urea manufacturing units, out of which 28 urea units use Natural Gas (using domestic gas/LNG/CBM) as feedstock/ fuel and remaining 3 urea units use Naphtha as feedstock/fuel.

Reference: 
http://pib.gov.in/PressReleseDetail.aspx?PRID=1524417