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Press Information Bureau
Government of India
Ministry of Chemicals and Fertilizers
24-August-2012 14:26 IST
Increase in Price of Urea
There is no proposal to reduce the subsidy on fertilizers. As regards increase in the retail price of Urea, formulation of policy for existing urea units beyond Stage-III of New Pricing Scheme (NPS) is under consideration of the Government.

The Maximum Retail Price of Urea fixed by the Government w.e.f. 1st April, 2010 is Rs. 5310/- per MT exclusive of CST, Sales Tax and Central Excise Duty.

The MRP of urea has remained unchanged as stated above. As regards other fertilizers, Nutrient Based Subsidy (NBS) policy is being implemented on P&K fertilizers under which a fixed amount of subsidy on annual basis, is provided on all grades of subsidized P&K fertilizers. The MRP of P&K is fixed by fertilizer companies.

Since the country is dependent on imports of P&K fertilizers either in the form of finished or its raw materials, the delivered prices of P&K fertilizers are also dependent on international prices of P&K fertilizers and its raw materials and exchange rate on Indian Rupee against US$.

During the year 2010-11, the international prices of P&K fertilizers and its raw materials increased marginally and exchange rate remained stable, therefore, the prices of P&K fertilizers in the country increased marginally.

During the year 2011-12, in spite of increase in the rates of subsidy rates, the prices of P&K fertilizers rose due to increase in international prices of P&K fertilizers and increase in exchange rate.

During the year 2012-13, the prices of P&K fertilizers have increased mainly due to depreciation of Indian Rupee from around Rs. 50 per US$ in March 2012 to more than Rs. 56 per US$ in June 2012.

It is seen that the prices of P&K fertilizers have increased mainly due to increase in international prices of P&K fertilizers on which the Government has no control and due to depreciation of Indian Rupee.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.

DNM/AS