Amid shooting global prices of fertilizers, India protected its farmers by providing its farmers with additional subsidies to ensure that they were not overburdened, Union Finance Minister Nirmala Sitharaman said.
"It is not just the elevated prices of fertilizer and energy, but the availability of these commodities too are challenges," Sitharaman said while addressing a gathering at the Brookings Institute here.
The finance minister highlighted the numerous risks that are "extraneous" to the Indian economy amid the ongoing external headwinds.
As a result of the lack of availability of fertilizers and their prices having shot up, some parts of the world, the minister said are currently facing "severe food insecurity", Sitharaman said during a fireside conversation with eminent economist Eshwar Prasad.
Further, while talking about how India dealt with the rising fertilizer costs the union minister said: "Last year we had to give 10x the price to import. And obviously, Indian farmers are not really large farmers...But they really need fertilizers at an affordable price. So I can't raise the input costs by saying I am importing it at this price therefore it is yours to take the burden as well," she said adding that the central government had shelled out the additional on behalf of the farmers.
"The farmer pays what he had paid in 2018, 2019, 2020 and even today he pays that price in spite of the international prices going up."
Moreover, to tide over the current headwinds, Sitharaman said the central government has been making sure that credit facilities are available for businesses and farmers at an affordable rate and interest subventions wherever needed.
Budget allocation for fertilizer subsidy increased from Rs 81,125 crore in FY20 to Rs 215,222 crore (estimate) in the current financial year, rating agency CareEdge said last week quoting the Department of Fertilizers.
In Sitharaman's remarks at the Brookings Institute event, she said in the upcoming budget next February, growth will be among the top priorities of the government and attention will be paid to sustaining the momentum that the Indian economy has got coming out of the COVID-19 pandemic.
Answering a question on priorities Modi government might have in the budget regarding specific expenditure revenue, she said the growth priorities will be kept among the top priorities and inflation concerns will be closely examined.
"Measures, specific may be difficult at this stage because it's a bit too early. But broadly, the growth priorities will be kept absolutely on the top, even as I speak about the concerns that inflation brings before me. So inflation concerns will have to be addressed. But then how would you manage growth would be the natural question," she said.
Sitharaman is on an official visit to the US till October 16. During her visit, she will be attending the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings.
The Finance Minister will take part in bilateral meetings with several countries, including Japan, South Korea, Saudi Arabia, Australia, Bhutan, New Zealand, Egypt, Germany, Mauritius, UAE, Iran and Netherlands.
The Finance Minister will also hold one-on-one meetings with leaders and heads of OECD, the European Commission and UNDP.
( With inputs from ANI )
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