Punjab probes 7 Markfed Milkfed officials for alleged urea diversion
Punjab just took action against seven officials from Markfed and Milkfed for allegedly turning farmer-friendly, subsidized urea into industrial-grade and selling it to businesses like cattle-feed plants.
The catch? This repackaging trick shows that even with neem coating and digital tracking, India's fertilizer subsidy system still has some serious gaps.
Price gap fuels ₹6000cr urea diversion
Here's the deal: farmers get agricultural urea at just ₹5.92 per kilo thanks to subsidies, but industries pay ₹55-₹65 per kilo without any help.
That massive price gap makes illegal diversion tempting, and in 2022 it was estimated that diversion cost India about ₹6,000 crore annually despite government crackdowns.
Punjab's case is a reminder that stronger checks are needed to keep subsidies working for those who need them most.