India’s Urea Policy

Urea Subsidy:

The Central Government of India fully funds the urea subsidy through financial assistance as part of the department’s Central Sector Scheme (CSS). Urea is provided to farmers at a legally set price in order to support sustained agricultural development and encourage balanced nutrient application....

History of the Urea Subsidy:

To control the sale, cost, and quality of fertilizer, the Fertilizer Control Order was issued in 1957. Later in 1973, the Movement Control Order was issued to control fertilizer delivery. The 1973 oil crisis raised the price of fertilizer, which decreased consumption and raised food costs. Therefore, the government-supported producers in 1977. The government deregulated the import of DAP (di-ammonium phosphate) and MOP (Muriate of potash) in 1992 as the BoP issue grew severe. But urea imports are still limited and controlled....

India’s Urea Policy:

The Central Government significantly subsidizes urea, which is the main source of nitrogenous fertilizer. The only fertilizer that is still under control as of right now is urea. The Department of Fertilizers’ urea subsidy is classified as a Central Sector Scheme, and the Central Government is fully responsible for funding it. In 2015, the Department of Fertilizers developed a policy. A comprehensive New Urea Policy 2015  for the following four financial years was approved by the Union Cabinet in May 2015. (June 2015 to March 2019)....

New Urea Policy 2015:

Its main objectives are:...

Fertilizer Sector of India:

After China, India is the country that uses the most urea fertilizers. In terms of phosphatic fertilizer output, it comes in third place, but imports are necessary to meet the demand....

Related Frequently Asked Questions & Answers:

1Q. Who fully funds the financial assistance for the New Urea Policy 2015 Scheme?...