SME Times News Bureau | 15 Jun, 2012
The government Thursday deferred a proposal to hike the retail price of urea by 10 percent for this financial year.
hike was proposed by the fertiliser ministry to reduce the subsidy
burden, limiting the excessive use of the soil nutrient in the country
compared to phosphatic and potassic fertilisers. In 2011-12, urea is
estimated to have contributed Rs.24,500 crore to the fertiliser subsidy
"It (the proposal) has gone back to the ministry. They
have to take a second look," Home Minister P. Chidambaram told reporters
after a meeting of the Cabinet Committee of Economic Affairs.
price at present is fully controlled. It was last revised in April 2010
from Rs.4,830 per tonne to the current level of Rs.5,310 a tonne.
Earlier, an empowered group of minister had approved deregulating the key fertiliser.