The government today decided to increase urea prices by 10 per cent and gave freedom to industry to fix prices of other fertilisers, a step with which Fertilisers Minister M K Alagiri is said to be not happy with.
"It has been decided to increase the maximum retail price of urea from Rs 4,830 per tonne to Rs 5,310 per tonne with effect from April 1, 2010," Information and Broadcasting Minister Ambika Soni said after a meeting of the Union Cabinet.
The meeting, chaired by Prime Minister Manmohan Singh, approved the nutrient-based subsidy scheme (NBS) for phosphatic and pottasic fertilisers after discussing the issue for more than an hour during which some ministers belonging to Congress and allies expressed reservations, sources said.
"Prime Minister took the views of several ministers. It was discussed elaborately and the decision was unanimous," Soni said, pointing out that industry has assured the government that fertiliser prices would not be raised for the coming kharif season and maintain them at current level.
Alagiri, who has been opposing freeing fertiliser prices, is believed to have expressed concern over the move. Two other ministers are also understood to have raised objections.
When asked about the impact of the Cabinet's decision on fertiliser prices, Soni said, "The government reserves the right to intervene to protect the interest of farmers."