The Union government on Thursday decided to raise the retail price of urea by 10 per cent and allowed manufacturers to fix the rates of DAP and MOP fertilisers.
The decisions, a part of new nutrient-based subsidy (NBS) scheme approved by the Cabinet today, will be effective from April 1, 2010.
At present, the maximum retail price (MRP) of urea is Rs 483 a quintal, while DAP costs Rs 935 a quintal and MOP Rs 445.50 a quintal.
Under NBS, subsidy is given to nutrients (nitrogen, phosphorus, potash and sulphur) contained in the fertiliser. It will also do away with the maximum retail price (MRP).
However, the government will continue to fix the MRP of widely used fertiliser urea.
