The Government of India has clarified that there is no proposal to increase urea prices, even as it moves ahead with a policy shift to reduce the size of urea bags in a bid to promote balanced fertiliser usage and improve soil health across the country.
In a written reply in the Lok Sabha, Anupriya Patel stated that the reduction in bag size, from 50 kg to 45 kg, and in some cases to 40 kg, is a deliberate policy intervention aimed at curbing excessive use of urea and encouraging farmers to adopt more scientific and efficient nutrient management practices.
The government has maintained that the move does not translate into any increase in the cost burden on farmers. At present, the Maximum Retail Price (MRP) of a 45 kg bag of Neem Coated Urea remains Rs 242 per bag, excluding neem coating charges and applicable taxes. Similarly, sulphur-coated urea is priced at Rs 254 for a 40 kg bag, exclusive of levies and GST.
Officials have underlined that India has long grappled with imbalanced fertiliser consumption, with urea accounting for a disproportionately high share of total nutrient use. This has led to declining soil fertility, lower crop productivity over time, and adverse environmental impacts such as groundwater contamination and greenhouse gas emissions.
By reducing bag sizes, policymakers aim to nudge farmers towards more judicious application of fertilisers and encourage the use of alternative nutrients such as phosphatic and potassic fertilisers, along with organic inputs. The initiative is also aligned with broader government efforts to promote sustainable agriculture, including the use of nano fertilisers and soil health cards.
The fertiliser subsidy regime in India continues to play a crucial role in keeping urea prices affordable. Despite fluctuations in global fertiliser prices, the government has absorbed much of the cost through subsidies to ensure that farmers are insulated from price volatility.
Agriculture experts believe that while the bag size reduction is a subtle step, it could have a meaningful behavioural impact over time by discouraging overuse and promoting efficiency. However, they also emphasise the need for complementary measures such as farmer awareness campaigns, extension services, and easy availability of balanced fertiliser options.
The government reiterated that its objective is to ensure sustainable agricultural practices without imposing additional financial strain on farmers, while safeguarding long-term soil health and productivity.
