Russia-Ukraine War : India is also suffering a lot due to the Russia-Ukraine War. Especially India is facing trade deficit with both Russia and Ukraine. Due to the war, the Fertilizer Subsidy Bill of the government may increase by about Rs 10,000 crore in the current financial year. But the increase in tax revenue will help in keeping the fiscal deficit close to the estimated 6.9 percent.
Giving this information, an official said that due to increased production by the US and OPEC member countries, crude oil prices are expected to come down in the next 2-3 months. According to the Revised Estimates (RE), the fertilizer subsidy in the current financial year is likely to be more than Rs 1.40 lakh crore, while as per the Budget Estimates (BE) for the next fiscal, the subsidy will be more than Rs 1.05 lakh crore.
Crude oil prices may come down in next few months
“We expect crude oil prices to come down in the next 2-3 months. There will be no change in the government’s budget in the current financial year except for fertilizer subsidy due to rising oil prices. Fertilizer subsidy is expected to increase to around Rs 10,000 crore.
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Domestic prices of urea to rise
The official further said that since farmers need to store fertilizers before the start of the sowing season, one cannot wait till the international prices come down for import of potash. Apart from this, the increase in the prices of natural gas will increase the domestic prices of urea. The official said that despite this increase in subsidy, the fiscal deficit will remain close to the level of 6.9 per cent in the current fiscal as per the revised estimates.
This is the third week of the war between Russia and Ukraine. Today is the 18th day of the ongoing war between the two countries. While Ukraine is getting destroyed day by day in Russia’s attack, on the other hand Russia is also suffering a lot from it. According to the United Nations Human Rights Office, so far 579 people have died in the Russo-Ukraine war and more than 1,000 people have been injured. Not only this, millions of people of Ukraine have left their country to avoid Russian attacks.
Tags: Farmer, Fertilizer crisis, India russia, Russia ukraine war
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