Government to review fixed costs for urea plants, subsidy payouts may change

Oct 7, 2026

In response to rising production costs, the government is launching a sub-committee to assess fixed-cost payments for urea producers. This initiative may lead to changes in the payment framework, directly impacting government subsidy allocations. The current fixed-cost formula has been stagnant since the financial year 2002-03, prompting industry advocates to request that heightened costs be factored into forthcoming reviews.

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