Lucknow, January 11: Uttar Pradesh government stands by its farmers by reducing the burden from their shoulders as the Chief Minister Yogi Adityanath today reduced the prices of urea fertilizer by 11 percent in the interest of the farmers. The cut in fertilizer prices will be effective from January 12. The decrease in prices of Urea is due to a reduction in additional VAT levied on natural gas.
State Government spokesperson said now the bag of 45 kilograms of urea will be available at the cost of rupees 266 and 50 paise instead of rupees 299. At the same time, 50-kilogram Urea bag will cost rupees 295. This is an important step in the direction of the government's effort to double farmers income by 2021.
For years farmers in the state are demanding prices of Urea at par with the other states.
Earlier, there were three VAT slabs with the piped natural gas being taxed at 26 per cent, including 5 per cent additional levy. Now, the VAT on natural gas has been rationalised from 21 per cent to 14.5 per cent and the additional VAT of 5 per cent waived off. This VAT cut would impact the state exchequer by almost Rs 1,000 crore per annum.