New Delhi: The government approved a new urea policy aiming to increase domestic production by 2 million tonnes and reduce its subsidy bill by over Rs 4,800 crore annually, but decided not to raise retail prices.
The maximum retail price of urea for farmers has been left untouched at Rs 268 per bag of 50 kgs, excluding local taxes. Farmers would have to pay an additional Rs 14 per bag for neem-coated urea.
The Cabinet on Wednesday approved a comprehensive New Urea Policy 2015 for the next four fiscals with multiple objectives of maximising indigenous urea production.
“The policy will result in direct saving of subsidy of around Rs 2,618 crore and indirect saving of Rs 2,211 crore on account of revised specific energy consumption norms and import substitution, respectively, during the next four years.
