Indian fertilizer subsidies are roughly equal to a third of annual defense budget

December 12, 2014

 

Indian fertilizer subsidies are roughly equal to a third of the annual defense budget.[11 billion/36.3 billion OR 12.2 billion/36.3 billion = 30.3-34%]

 

Total budget of India = 1794892 Rs crore ($294437.664 million)

 

A proposed doubling of natural gas prices is now expected to force the government's hand. Gas accounts for four-fifths of the cost of making urea, a nitrogenous fertilizer that consumes more than half of India's $11 billion annual fertilizer subsidy bill.”

[“The government of Prime Minister Narendra Modi last week, in its first budget since taking power two months ago, raised to $12.2bn its subsidy fund for the domestic fertilizer industry in 2014-15.However, for phosphates and potash, of which India is a major importer, the subsidy budget was cut by 15% to $4.1bn. And while the allocation to the third main nutrient type, nitrogen, was raised by $1.7bn to $8.1bn, that too may be a negative for world prices, Macquarie said, given that it will boost domestic production of a fertilizer which India does produce itself, but for which the world already has strong supplies.”

“India ($36.3 billion): India's skyrocketing population reached 1.23 billion people in 2012, putting its defense spending at just $29 per person.

 

“Government plans urea price hike to curb fertilizer subsidies,” Reuters, June 9, 2014, accessed September 24, 2014, http://timesofindia.indiatimes.com/business/india-business/Government-pl....

 

"Budget at a Glance," accessed September 24, 2014, indiabudget.nic.in/ub2014-15/bag/bag1.pdf

 

“Raised India nutrient subsidy bodes ill for prices,” agrimoney.com, July 15, 2014, September 24, 2014, http://www.agrimoney.com/news/raised-india-nutrient-subsidy-bodes-ill-fo...

 

Sarah Wolfe, “Global Military Spending Set to Increase in 2014,“ National Public Radio: Politics and Policy, February 12, 2014, accessed September 24, 2014, http://www.npr.org/blogs/parallels/2014/02/12/275885249/global-military-....

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