In a move to help farmers, Manipur government has decided to provide urea at Rs. 400 per bag weighing 50 Kg, official sources said on Saturday.
The decision to reduce the price from about Rs. 600 per bag was taken during a cabinet meeting presided over by Chief Minister O. Ibobi Singh , sources said.
The state cabinet had also sanctioned Rs. 2 crore for making urea available at that rate and help the farming community.
The sources elaborated that the Rs 2 crore amount would be used in giving subsidy to 10,000 metric tonnes of urea to ensure the rate is fixed at Rs. 400/bag.
Dealers procure urea from Namrup factory in Assam at Rs. 192 per bag.
Adding Rs. 9 as dealer margin, Rs. 278 for freight charge and Rs. 23.81 as sales tax, retailers cannot afford to sell it below Rs. 500 per bag (50 kg).
Sometimes, there are report of it being sold at about Rs. 600 per bag in black market.