Change in urea price policy, subsidy bill cut

The Government today approved a shift in norms for calculating the price paid to producers for urea, which could annually save about Rs 620 crore of subsidy.

The new price policy for urea units cleared by the Cabinet Committee on Economic Affairs replaces the unit-based retention price scheme with a group-concession scheme.

The new scheme, to come into effect from next April, is expected to promote competition and cost-reduction measures. As per present estimates, it may cut subsidy outgo by about Rs 620 crore.