3 lakh crore approved by Cabinet Committee for Urea Subsidy
30 June 2023, New Delhi: The Cabinet Committee on Economic Affairs (CCEA) approved the continuation of the Urea Subsidy Scheme to ensure constant availability of urea to the farmers at the same price of Rs 242/ 45 kg bag excluding taxes and neem coating charges.
Rs. 3,68,676.7 crore have been committed for urea subsidy for three years (2022-23 to 2024-25). This is apart from the recently approved Nutrient Based Subsidy of Rs 38,000 crore for the Kharif season for 2023-24.
The farmers need not spend extra for the purchase of urea, and this will help moderate their input costs. At present, the MRP of urea is Rs.242 per 45 kg bag of urea (exclusive of charges towards neem coating and taxes as applicable), whereas the actual cost of the bag comes to around Rs. 2200. The Scheme is wholly financed by the Government of India through budgetary support. The continuation of the Urea Subsidy scheme will also maximize indigenous production of Urea to reach self-sufficiency levels.
Due to the ever-changing geopolitical situation and increased raw material prices, Fertilizer prices have been increasing multifold globally over the years. But the Government of India has protected its farmers from steep fertilizer price rises by increasing the fertilizer subsidy.
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