Govt considering hiking urea retail prices

The government is under actively considering to increase retail price of urea by 10 per cent to reduce its subsidy burden in the current fiscal. The Fertiliser Ministry is looking at increasing retail price of urea by at least 10 per cent to Rs 5,841 per tonne to bring down its subsidy burden.

Currently, Government provides subsidy on fertilisers, fuels and food. The difference between the cost of production and the MRP is paid to manufacturers. Due to rising fiscal deficit, the government is working in bring down expenditure on major subsidies.

The final call on this issue will be taken by the Cabinet Committee on Economic Affairs (CCEA).