Urea Policy

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New urea policy is showing encouraging results

The Union Cabinet is believed to have approved a proposal to allow 14 urea units, which could not meet the new energy norms under the 2015 policy, to continue with the existing norms till March 2023, sources said. According to sources, the existing energy norms for 14 urea manufacturing units have been extended for further period till 31st March, 2023. Some penalty has been imposed while giving an extension. These plants have been directed to meet the energy norm by March 2023. The extension of present energy norms will ensure easy availability of urea to farmers through domestic production, they added. The New Urea Policy-2015 (NUP-2015) was notified by the Department of Fertilizers on 25th May, 2015 with the objective of maximising indigenous urea production, promoting energy efficiency in urea production and rationalising subsidy burden on the government. The NUP-2015 covers 25 gas-based existing urea units. As per NUP-2015, the existing gas-based urea units were classified int

The commissioning of new plants is expected to bring down import dependency to less than half of current levels

Per year, about 1-1.2 million tonnes of urea meant for farming gets diverted towards industrial use, say officials

Sources said a cumulative impact of Rs 5,600 crore could be released to the fertilizer companies as result of the Cabinet decision

Supplies to farmers in Madhya Pradesh accounted for just half the requirement of 400,000 bags of urea this November, even as mounting inventories incurred losses for companies

It's a distinct possibility in the near future

Changes in urea policy

The import price parity calculation has been changed to include customs and port handling charges