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Agriculture
CAG Investigates Urea Subsidy Diversion in 169 Districts
✍️ TOI India
🗓 14 Nov 2026, 09:18 AM
👁 23
The Comptroller and Auditor General has launched an inquiry into the alleged diversion of subsidised urea across 169 districts, flagging potential misuse of the fertilizer scheme.
The Comptroller and Auditor General (CAG) has announced a formal probe into the diversion of subsidised urea in 169 districts across India, citing irregularities in the distribution process.
The investigation follows reports that large quantities of urea, earmarked for farmers under the government’s subsidy scheme, have been diverted to private traders and non‑agricultural channels. The CAG’s audit highlights gaps in monitoring and suggests that the current tracking mechanisms are insufficient.
If the allegations are proven, the diversion could undermine the subsidy’s objective of keeping fertilizer affordable for small‑holder farmers, potentially affecting crop yields and rural livelihoods.
The CAG will compile a detailed report and recommend corrective measures, including tighter controls on distribution and penalties for non‑compliance. The government has pledged to cooperate fully with the audit and to take swift action against any malfeasance uncovered.
The investigation follows reports that large quantities of urea, earmarked for farmers under the government’s subsidy scheme, have been diverted to private traders and non‑agricultural channels. The CAG’s audit highlights gaps in monitoring and suggests that the current tracking mechanisms are insufficient.
If the allegations are proven, the diversion could undermine the subsidy’s objective of keeping fertilizer affordable for small‑holder farmers, potentially affecting crop yields and rural livelihoods.
The CAG will compile a detailed report and recommend corrective measures, including tighter controls on distribution and penalties for non‑compliance. The government has pledged to cooperate fully with the audit and to take swift action against any malfeasance uncovered.