Archive · 1 Aug 2025
CAG Finds Misuse of MP Fertilizer Fund for Vehicles
A government fund meant to help farmers in Madhya Pradesh was mostly used to pay for cars and their upkeep.
The money was supposed to assist farmers facing difficulties, but a report showed most of it went to vehicles.
Also, farmers paid extra for fertilizer because a company didn't give them discounts.
The government also did not properly plan how to provide fertilizer based on farmers needs.
CAG report reveals misuse of Madhya Pradesh's Fertilizer Development Fund.
Rs 4.79 crore of the Rs 5.31 crore fund was spent on vehicles and related costs.
Only Rs 5.10 lakh of the fund benefited farmers directly.
MP Markfed failed to pass on fertilizer rebates, costing farmers Rs 10.50 crore.
Government failed to plan fertilizer supply based on soil data and district needs.
- Who
- Comptroller and Auditor General of India (CAG), Madhya Pradesh government, MP Markfed, and farmers.
- What
- CAG report found the Fertilizer Development Fund in Madhya Pradesh was misused, with most funds spent on vehicles instead of farmer support.
- When
- From 2017-18 to 2021-22
- Where
- Madhya Pradesh
- Why
- The fund was intended to assist farmers, but it was misused due to a lack of oversight and improper allocation.
CAG Findings
Cooperation Department
Fund Allocation
CAG Findings
Most funds were misused for vehicles, not farmer support.
Cooperation Department
The Cooperation Department stated vehicles were necessary for monitoring and supervision.
Fertilizer Pricing
CAG Findings
Farmers were burdened with extra costs due to Markfed's failure to pass on rebates.
Cooperation Department
No opposing view provided in the article.
- Fund Name
- Fertilizer Development Fund
- Total Fund
- Rs 5.31 crore
- Spent on Vehicles
- Rs 4.79 crore
- Farmer Benefits
- Rs 5.10 lakh
- Markfed Loss to Farmers
- Rs 10.50 crore
