The central government is continuing to provide substantial support to farmers through fertiliser subsidies despite rising prices in the international market. Union Finance Minister Nirmala Sitharaman said at an event in Madanapalle, Andhra Pradesh, that the government is absorbing around ₹2,700 per bag of urea to ensure farmers can access the fertiliser at an affordable price.
According to Sitharaman, international urea prices have increased sharply, with the cost of a bag reaching around ₹3,000 at certain times. Despite the increase, farmers continue to get urea at around ₹300 per bag.
Government Bears Major Share of Urea Cost
Sitharaman said the Centre has been bearing a subsidy of nearly ₹2,700 for every bag of urea so that farmers are protected from the impact of higher global prices.
She pointed to the COVID-19 pandemic and continuing geopolitical tensions in West Asia as factors that pushed up the cost of imported urea. At certain points, the import cost had risen to around ₹3,000 per bag. Despite these challenges, the government maintained support for farmers and ensured that they did not have to bear the additional cost.
The subsidy is provided to fertiliser manufacturers and importers, helping keep the price paid by farmers substantially lower than the prevailing cost.
What Is the Price of a 45-Kg Urea Bag?
The government-fixed Maximum Retail Price (MRP) for a 45-kg bag of urea is currently ₹242, excluding neem-coating charges and applicable taxes. The Finance Minister, however, highlighted that the effective price paid by farmers remains around ₹300 per bag.
In a post on X, Sitharaman said that despite the pandemic, global challenges and geopolitical tensions in West Asia, the government has continued to ensure the availability of urea to farmers at an affordable price. She said a subsidy of around ₹2,700 per bag is being provided.
Agriculture and Horticulture Get Focus in Andhra Pradesh
During her visit to Madanapalle, Sitharaman also announced initiatives focused on strengthening agriculture and horticulture in Andhra Pradesh.
She said the Centre and the state government are working together to increase investment in agriculture and allied activities while improving facilities and support available to farmers.
Disclaimer: The subsidy and price figures mentioned in this article are based on statements and information provided by Union Finance Minister Nirmala Sitharaman and the source material. Actual fertiliser prices may vary depending on applicable charges and government notifications. Readers should refer to official government sources for the latest urea pricing and subsidy details.