Urea overuse in 169 dists raises red flags, CAG probing diversion

NewsIndia NewsUrea overuse in 169 dists raises red flags, CAG probing diversion Urea overuse in 169 dists raises red flags, CAG probing diversion CAG has initiated an all-India performance audit of fertiliser subsidy This integrated audit approaches a wider cooperation and participation from different govt departments, like the GST network, agriculture ministry, railways and others, who will assist the auditors in its assessment of the fertiliser control system and the efficacy of the regulators.The finance ministry recently flagged the possibility of diversion of urea based on e-way bills as it found trucks were taking detours or making multiple stops.

A parliamentary panel too had flagged concerns over diversion of urea, especially in border districts.Officials said the alleged diversion of subsidised urea from some of the bordering districts in UP, Rajasthan, Punjab and Bihar has also raised doubts if they are also being smuggled out of the country.

The highest 37 districts being assessed for overconsumption of urea are in UP, followed by 16 each in Bihar and Tamil Nadu, and 14 each in Punjab and Gujarat. The 20 districts that were later added for further examinations are in Karnataka, Rajasthan, MP and Maharashtra.India's total urea consumption is estimated at around 400 LMT a year, of which more than 100 LMT are imported.

Even for domestic production, it requires a huge amount of imported LPG, as the fuel constitutes 90% of the input cost of urea. Over-consumption of subsidised urea raises additional subsidy burden on the energy bill and increases our import dependence, besides adding to greenhouse gas emissions, an official said.Join conversation InsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig Development "As agricultural urea is universally subsidised, substantial volumes have historically been diverted into non-agricultural sectors.

Technical grade urea is a core commercial raw material in resins, glues, plywood fabrication, crockery manufacturing, cattle feed, and commercial explosives," the official added. Get the latest India News and Live updates.

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