The Government has said that there is no proposal to cut fertilizer subsidies. In a written reply in the Rajya Sabha, Chemicals and Fertilizers Minister DV Sadanand Gowda said, over two lakh twelve thousand crore rupees have been paid subsiding by the government during last three years.
Urea is being provided to farmers at a statutorily notified Maximum
Retail Price. The MRP of a 45 kg bag of Urea is 242 rupees per bag and the MRP of a 50 kg bag of Urea is 268 rupees.
The difference between the delivered cost of fertilizers at farm gate and net market realization by the urea units is given as subsidy to urea manufacturers and importers by the central government.