Govt yet to take decision on deregulating urea prices

The government has yet to take a call on removing price controls on urea and scrapping an import duty of 5 per cent, Chemicals and Fertiliser Minister Ananth Kumar said on Tuesday.

The Indian Express reported on Monday that the government was planning to deregulate urea and remove the duty on the organic compound.

"We are thinking of farmers when we take policy decisions... We will supply urea, fertiliser at subsidised rates," Kumar said.

Fertiliser subsidy costs quadrupled over the past decade as the previous UPA government kept urea prices below the cost of production, fearing a backlash from the powerful farm lobby.

The price for urea has risen just 16.5 per cent since 2000, while the price of non-urea fertilisers like diammonium phosphate have nearly tripled and muriate of potash has quadrupled.

(Reuters)