NB Explains | Cabinet gives nod Rs 22,303 cr fertilizer subsidy for Rabi season; Know why this is crucial NOW?

New Delhi, Oct 26: In a significant development, the Union Cabinet on Wednesday announced Rs 22,303 crore subsidy on phosphatic and potassic fertilizers for the current rabi season (from October 1, 2023 to March 31, 2024) and said that farmers will continue to get key soil nutrient DAP at Rs 1,350 per bag.

 

 

 

This announcement comes weeks before assembly polls in five states and months before the 2024 Lok Sabha polls.

 

 

It should be noted that agriculture accounts for nearly one-fifth of India's gross domestic product and over 45% of its workforce. In simpler terms, it means 45 out of 100 working Indians are employed in the agriculture sector. Besides, experts say that working Indians mean eligible voters so, agriculture as an occupational group is a potential vote base on its own.

 

 

Speaking of the assembly elections, four out of the five states that go to polls next month - Madhya Pradesh, Rajasthan, Chhattisgarh and Telangana - have farm sector employment much higher than the national average.

 

Chhattisgarh's agricultural workforce is around 63%, MP's 60%, Rajasthan's 55% and Telangana's 47%, according to government data.

 

In all four of them, the average annual growth rate of the agriculture sector is between 5.2% and 6.1% - which too is way above the national average growth rate of 3.9%. Also, in MP, the agriculture sector accounts for 45% of the state's economy. So, the sector clearly has a direct implication on people's lives.