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CAG Initiates First Performance Audit on Fertiliser Subsidy Since 2011
Sentiment: NeutralHigh Priority
What Happened?
The Comptroller and Auditor General (CAG) is conducting a nationwide performance audit of the fertiliser subsidy, focusing on urea usage and preventing diversion for non-agricultural purposes. The report is expected by the end of next year.
Key points
- The audit is the first since 2011 and will cover two financial years starting from FY27.
- Fieldwork began in May-June 2026, focusing on 169 districts across 15 states.
- Uttar Pradesh has the highest number of districts with urea consumption above the national average.
- The audit will check for urea diversion to explosives and assess the neem-coated urea scheme's effectiveness.
- Urea imports in 2025-26 reached 10.35 million metric tonnes, a significant increase from previous years.
Key insights
- The audit may reveal systemic issues in fertiliser distribution and usage.
- Findings could influence future government policies on fertiliser subsidies.
- The focus on border areas may highlight smuggling issues affecting agricultural inputs.
Why it matters
This audit could help ensure that fertiliser subsidies are used effectively and prevent misuse.
Source
Business Standard
