A ₹6,000 crore annual subsidy leakage is exposed by the Punjab urea diversion case, where subsidised agricultural urea was illegally diverted to industrial use via state cooperatives Markfed and Milkfed. This reveals the persistent failure of neem coating and digital tracking to prevent arbitrage driven by the huge price gap between subsidised (₹5.92/kg) and industrial urea (₹55-65/kg). The case underscores the need for stronger enforcement under the Fertiliser Control Order and Essential Commodities Act.
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- ›Annual Subsidy Leakage: ₹6,000 crore
- ›Diverted Quantity (annual estimate): 10-12 lakh tonnes
- ›Target this Data: Annual subsidy leakage due to urea diversion: ₹6,000 crore; diverted quantity: 10-12 lakh tonnes per year.
- ›Target this Nodal Body: Department of Fertilisers (under Ministry of Chemicals and Fertilizers) – responsible for enforcement via Flying Squads.
- ›Target this Legal Point: Fertiliser Control Order (FCO) and Essential Commodities Act, 1955 – key legal instruments for regulating fertiliser diversion.
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