Speaking at a meeting in Madanpalle of Andhra Pradesh, Finance Minister Nirmala Sitaraman stated on Friday that due to the sharp rise in global prices for nitrogen fertilizer (urea), the cost of one bag has reached 3000 rupees. Nevertheless, farmers in India continue to receive urea at only 300 rupees per bag.
She emphasized that the central government independently covers a subsidy of about 2700 rupees for each bag of urea, which allows the price for farmers to remain around 300 rupees. The minister noted that the government is striving to protect farmers from significant increases in fertilizer prices caused by global disruptions, including the pandemic and geopolitical tensions in the Middle East.
On social media platform X, Finance Minister Sitaraman wrote that despite serious global issues such as the pandemic and political instability in the Middle East, the Prime Minister ensured that farmers receive urea for only 300 rupees. The government provided a subsidy of 2700 rupees per bag, thereby mitigating the global burden.
The Finance Minister stated that the government's priorities remain ensuring adequate availability of essential agricultural resources, as well as increasing farmers' incomes and improving access to institutional credit. She added that under the guidance of PM Narendra Modi, the welfare of farmers is a central focus, whether through direct benefit transfers via PM-KISAN Samman Nidhi or timely access to institutional credit through the Farmer Credit Card. Ensuring the complete absence of shortages of necessary resources is the highest priority.
Sitaraman addressed an event in Madanpalle where goals for horticulture and agriculture in Andhra Pradesh were announced. She reported that the central and state governments are jointly working to increase investment and support in the agricultural sector.
The government uses fertilizer subsidies to keep the prices of agricultural resources below their production cost. Under the urea subsidy scheme, the difference between the cost of urea and the amount received from its sale is returned to fertilizer producers and importers so as not to create a financial burden for farmers. The maximum retail price of a 45 kg bag of urea approved by the government is 242 rupees, excluding nitration charges and applicable taxes.