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Govt absorbing up to Rs 2,700 per urea bag as global costs rise to Rs 3,000: Sitharaman

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Madanapalle (Andhra Pradesh) | October 2, 2026 5:29:59 PM IST
The Centre has been absorbing a subsidy of around Rs 2,700 on every bag of urea when global costs have risen as high as Rs 3,000, keeping the price paid by farmers at around Rs 300, Union Finance Minister Nirmala Sitharaman said on Friday.

Addressing a gathering at Madanapalle in Andhra Pradesh, Sitharaman said the government had sought to shield farmers from the sharp rise in fertiliser costs caused by global disruptions, including the pandemic and geopolitical tensions in West Asia.

Despite severe global headwinds, the pandemic and geopolitical strife in West Asia driving import costs up to Rs 3,000 per bag of urea, PM ensured our farmers continued to receive it at just Rs 300, providing a subsidy of Rs 2,700 per bag, directly absorbing the global burden, Sitharaman said, according to posts by the Finance Ministers Office on X.

Fertiliser subsidies are used by the government to keep farm input prices below their delivered cost. Under the Urea Subsidy Scheme, the difference between the delivered cost of urea and the amount realised from its sale is reimbursed by the government to fertiliser manufacturers and importers.

The government-notified maximum retail price of a 45-kg bag of urea currently stands at Rs 242, excluding neem-coating charges and applicable taxes. Sitharamans remarks referred to the farmer price in rounded terms while highlighting the extent to which the Centre has absorbed higher global costs.

The Finance Minister said ensuring adequate availability of essential farm inputs remained a government priority alongside income support and access to institutional credit.

Under Narendra Modi's leadership, farmer welfare has been at the centre of every step, from direct benefit transfers through PM-Kisan Samman Nidhi to timely institutional credit via Kisan Credit Cards. Ensuring zero shortage of essential inputs has been our utmost priority, she said.

Sitharaman was speaking at an event in Madanapalle where initiatives aimed at developing horticulture and agriculture in Andhra Pradesh were announced. She said the Centre and the state government were working together to expand investment and support for agriculture and allied sectors. (ANI)

 
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