Government subsidises urea heavily to keep farmers' costs down: Sitharaman

Finance Minister Nirmala Sitharaman on Thursday underscored the government's commitment to agricultural support through heavy fertiliser subsidies, revealing the fiscal impact of maintaining affordable urea prices for Indian farmers.

Sitharaman stated that each bag of urea costs approximately ₹3,000 to produce, but the government supplies it to farmers at a subsidised rate of ₹300 per bag. This means the government absorbs a subsidy of ₹2,700 per bag to bridge the gap between production costs and the price offered to cultivators.

The subsidy scheme reflects the government's policy of keeping agricultural input costs manageable for farmers, particularly those engaged in cereal and cash crop cultivation. Urea, a nitrogen-based fertiliser widely used across Indian agriculture, is critical for soil enrichment and crop yields.

The Finance Minister's statement underscores the budgetary allocation devoted to agricultural subsidies as part of the government's rural support framework. This subsidy regime has been a significant component of India's agricultural policy, aimed at ensuring farming remains economically viable for cultivators across the country.