Finally, Urea price fixed at Rs 400/bag
Source: The Sangai Express

Imphal, June 10 2011: The SPF Government, in a Cabinet meeting, has decided to provide urea to farmers at Rs 400 per bag of 50 kgs.

The Cabinet meeting this afternoon was presided by the Chief Minister.

Later speaking to media persons, SPF spokesperson N Biren informed that the Cabinet has agreed on sanctioning Rs two crores so that urea can be made available to farmers at Rs 400 per bag.

The amount of Rs two crores would be used in giving subsidy to 10,000 metric tonnes of urea after which urea would be provided to farmers at Rs 400 per bag.

Dealers procure urea from Namrup factory at Rs 192 per bag.

Adding Rs 9 as dealer margin, Rs 278 for freight charge and Rs 23.81 as sales tax, retailers cannot afford to sell urea below Rs 500 per bag.

By giving subsidy to 10,000 metric tonnes, urea can be made available to farmers at Rs 400 per bag.

Even if there is some extra transportation charges for distant places, urea can be provided at Rs 420 per bag at the most, Biren stated.

The Cabinet meeting further agreed to revive the PDA posts which were abolished following downsizing as well as extension of PDA Chief Engineer Rashtrapati's service period by one year, Biren informed.

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