Govt says no decision yet to deregulate urea prices1 min read . Updated: 20 Jan 2015, 01:47 PM IST
We are thinking of farmers when we take policy decisions, said chemicals and fertilizer minister Ananth Kumar
Sonepat: India has yet to take a call on removing price controls on urea and scrapping an import duty of 5%, chemicals and fertilizer minister Ananth Kumar said on Tuesday.
The Indian Express reported on Monday that the government was planning to deregulate urea and remove the duty.
“We are thinking of farmers when we take policy decisions... We will supply urea, fertilizer at subsidized rates," Kumar said.
Fertilizer subsidy costs quadrupled over the past decade as the previous 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% since 2000, while the price of non-urea fertilizers like diammonium phosphate has nearly tripled and muriate of potash has quadrupled.