Govt hikes urea prices by 10%

Decision part of nutrient-based subsidy policy

PTI | February 19, 2010



The government on Thursday decided to raise the retail price of urea by 10 percent and allowed manufacturers to fix the rates of DAP and MOP fertilisers.

The decisions, a part of new nutrient-based subsidy (NBS) scheme approved by the Cabinet, will be effective from April 1, 2010.

At present, the maximum retail price (MRP) of urea is Rs 483 a quintal, while Diammonium Phosphate (DAP) costs Rs 935 a quintal and Muriate of Potash (MOP) Rs 445.50 a quintal.

Under NBS, subsidy is given to nutrients (nitrogen, phosphorus, potash and sulphur) contained in the fertiliser.

It will also do away with the maximum retail price (MRP).

However, the government will continue to fix the MRP of widely used fertiliser urea.

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