NEW DELHI: India’s urea imports has increased by 29 per cent to 21.43 lakh tonnes (LT) in the first four months of the current financial year.
Urea imports during the April-July period last year was 16.65 lakh tonnes, according to an official data.
Government imports urea for direct agricultural use to bridge gap between assessed demand and the local production.
Urea is imported through state trading enterprises — STC, MMTC and IPL.
India also imports urea from Oman India Fertiliser Company (Omifco) under a long-term urea offtake agreement between the government and the company.
India’s annual urea demand is about 300 LT while the domestic production has stayed stagnant at 220 LT. The rest is met through imports.
Urea is a controlled commodity in India as it is imported by the government itself. The soil nutrient’s maximum retail price is fixed at Rs 5,360 per tonne, and the difference between the cost of production and the retail price is paid as subsidy to the manufacturers.
