Determining whether something is "costly" is often subjective and depends on context, such as income levels or comparison to alternative products. However, in India, the price of urea is not determined by market fluctuations but is statutorily fixed by the government. This fixed price provides the basis for understanding its cost.
Urea Prices in India (Government Fixed MRP)
The Maximum Retail Price (MRP) of urea is regulated by the Government of India. This means the price farmers pay is set at a specific rate, rather than varying with supply and demand.
According to government regulations, the current fixed MRP for a bag of urea is:
- Rs. 268 for a 50 Kg bag of urea
- Rs. 242 for a 45 kg bag of urea
This fixed price includes an amount designated as the dealer margin for private traders, PSUs, and cooperatives, which is Rs. 354 per metric tonne (MT).
Fixed Price Structure
Here’s a breakdown of the current fixed prices:
| Bag Size | Fixed MRP (Rs.) |
|---|---|
| 50 Kg | 268 |
| 45 Kg | 242 |
These prices are standardized across the country due to the government's statutory control. While the reference provides these specific price points, it does not explicitly state whether these prices are considered high or low in a broader economic context or relative to farmer incomes. However, the fact that the price is fixed by the government often suggests an effort to manage affordability and availability for agricultural purposes.
