NEW DELHI (Commodity Online): With rising global price of urea, the India government is likely to raise the maximum retail price of the commodity by 40% so as to help the domestic companies earn better returns.
This hike would take the price of the commodity to nearly Rs 7,500, close to the current present market price.
Urea is the only controlled fertiliser in the country and this price hike would reduce the subsidy burden over the India government and also helps the companies to have capacity addition, reported Business Line.
Since 1997, there has been no capacity addition of urea in the country.
Meanwhile, the hike may affect the agricultural produce as it will raise cost of input which inturn would rise the price commodities in the market.
