Urea Subsidy: The central and state governments are implementing various schemes for farmers, providing them with financial assistance. Amidst this, Union Finance Minister Nirmala Sitharaman stated at an event in Madanapalle, Andhra Pradesh, that despite a sharp rise in global urea prices, the central government is providing a subsidy of approximately ₹2,700 per bag to ensure that farmers receive fertiliser at affordable rates. Global urea prices have surged to the point where a single bag costs ₹3,000; yet, farmers continue to receive urea at ₹300 per bag.
Sitharaman noted that the central government itself bears a subsidy of nearly ₹2,700 per bag, keeping the cost for farmers at around ₹300. She mentioned that due to the COVID-19 pandemic and ongoing tensions in West Asia, the import cost of urea had at times reached ₹3,000 per bag. Despite these challenges, the central government ensured that farmers did not face any additional financial burden and continued to provide urea at approximately ₹300 per bag.
Who receives the urea subsidy?
This amount is paid as a subsidy to fertiliser manufacturers and importers. Currently, the government-fixed Maximum Retail Price (MRP) for a 45-kilogram bag of urea is ₹242; this figure excludes neem-coating charges and applicable taxes. Highlighting the government’s expenditure, the Finance Minister noted that the price paid by farmers remains around ₹300.
Writing on the social media platform X, Finance Minister Sitharaman stated that despite severe global challenges, the pandemic, and geopolitical turmoil in West Asia, the Prime Minister ensured that farmers continue to receive urea for just ₹300. They have provided a subsidy of ₹2,700 per bag to farmers.
Boost for Agriculture and Horticulture in Andhra Pradesh
While addressing an event in Madanapalle, the Finance Minister announced several initiatives aimed at developing the agriculture and horticulture sectors in Andhra Pradesh. She stated that the central and state governments are working together to increase investment in agriculture and allied sectors and to provide better facilities to farmers.