Expected hike in urea sales to raise subsidy bill

New Delhi: Urea sales to farmers are expected to rise in the ongoing crop season, leading to an increase in the subsidy bill for the plant nutrient, said government officials.

Urea requirement is estimated to rise to 18.1 million tonnes from last year’s consumption of 17.9 million tonnes during the rabi season. Consumption of other chemical crop nutrients such as diammonium phosphate (DAP) and muriate of potash (MOP) is also likely to be slightly higher this year.

“DAP requirement is seen a tad higher at 5.35 million tonnes in the rabi season, as against nearly 5.26 million tonnes bought by farmers in the year-ago period. The consumption of MOP has been assessed at 1.5 million tonnes, as against the sale of 1.31 million tonnes during last rabi season,” said one of the officials, who did not wish to be identified.

For urea, the government pays 70% subsidy on the cost.