The Indian government has decided to extend the permission for the import of urea through fertilizer companies, namely India Potash Ltd (IPL), Rashtriya Chemicals & Fertilizers Ltd (RCF), and National Fertilizers Ltd (NFL), until March 31, 2025. This decision, as per a notification issued by the Directorate General of Foreign Trade, underscores the government's commitment to ensuring an uninterrupted supply of urea, a crucial fertilizer for the country's agriculture sector.
Urea is a vital component in agricultural practices, playing a significant role in enhancing crop yields. With India being a major importer of urea, accounting for approximately 30% of its total domestic consumption, the extension of import permission is ready to have a significant impact on the agricultural sector.
The move comes in the wake of Union Cabinet's approval of a proposal by the Department of Fertilisers to incorporate three new fertiliser grades under the nutrient-based subsidy scheme for the upcoming Kharif season. Furthermore, the Cabinet has sanctioned revisions in the subsidy rates for various nutrients, including nitrogen, phosphorus, potash, and sulphur, for the April–September 2024 Kharif season. Additionally, rates for phosphatic and potassic fertilisers have also been approved.
This proactive stance by the government is aimed at facilitating the availability of fertilisers to farmers at subsidized rates through schemes like the Nutrient-Based Subsidy (NBS) Scheme, which has been operational since April 1, 2010. The extension of the import permission for urea aligns with the government's broader agenda of supporting the agriculture sector and ensuring food security in the country.
In terms of trade figures, urea imports during the April-January period of this fiscal year amounted to USD 1.81 billion. China, Oman, and Russia stand out as the primary sources of urea imports for India, highlighting the importance of international trade relations in meeting the country's agricultural requirements.
The decision to extend the import permission for urea underscores government's commitment to boosting agriculture sector and fostering sustainable growth in the country's agricultural output.
