Govt okays continuation of Urea subsidy by 2020 to boost farmers' incomes

New Delhi, March 15: For sustained agricultural growth and to promote balanced nutrient application, Cabinet Committee on Wednesday has approved continuation of the Urea Subsidy Scheme from 2017 to 2020. The estimated cost on the scheme will be around one lakh 65 thousand crore rupees.

Implementation of DBT in Fertilizer Sector will reduce diversion and plug the leakages. Department of Fertilizers is in process to roll out DBT in fertilizer sector nationwide. DBT would entail 100 per cent payment to fertilizer companies on sale of fertilizers to farmers at subsidized rates.

Therefore, continuation of Urea Subsidy Scheme will facilitate the smooth implementation of DBT scheme in Fertilizer Sector.

Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers with effect from 1st April, 2017 and is wholly financed by the Government of India through Budgetary Support.

The continuation of Urea Subsidy Scheme will ensure the timely payment of subsidy to the urea manufacturers resulting in timely availability of urea to farmers. Urea subsidy also includes Imported Urea subsidy which is directed towards import to bridge the gap between assessed demand and indigenous production of urea in the country. It also includes freight subsidy for movement of urea across the country.