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CAG initiates first fertiliser subsidy audit since 2011, flagging compliance gaps

· Business · Business Standard

The Comptroller and Auditor General has launched a comprehensive audit of India's fertiliser subsidy regime, marking the first such in-depth review since 2011. The audit follows reports of systemic compliance gaps and potential misuse within the subsidy framework. CAG sources indicate the review will examine the entire subsidy value chain, from procurement to farmer delivery. The probe comes amid growing scrutiny over subsidy optimisation and fiscal sustainability in the agriculture sector.

Why it matters

The audit directly impacts fertiliser companies, state procurement agencies, and millions of farmers dependent on timely subsidy flows. Any findings of irregularities could trigger changes in subsidy disbursement mechanisms and pricing structures.

Read the original report — Business Standard

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