Urea production is likely to increase 1.6 per cent to 24.4 million tonne (MT) in 2018-19 financial year on smooth functioning of units, a senior Fertiliser Ministry official said today.
Urea production stood at 24.02 MT in 2017-18, as per the official data.
"There was a slight drop in urea output last year as some units were shut because they were taking steps to enhance their efficiency. However, this year all units are expected to function smoothly," the official said.
Therefore, the overall urea output is expected to reach 24.4 MT in the ongoing financial year, he said.
Stating that local production of urea is still short of annual demand of 30 MT, the official said the import would be in the range of 5-6 MT.
Urea's maximum retail price is fixed at Rs 5,360 per tonne. It is the most commonly used fertiliser because it is highly subsidised.
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To ensure balanced use of fertiliser and reduce the consumption of urea, the government has made it mandatory for all domestic and imported urea to be neem coated.
That apart, the companies have been asked to sell urea in a 45-kg bag instead of 50-kg.
Besides, the government is trying to promote judicious use of fertilisers with schemes like Soil Health Card and National Mission for Sustainable Agriculture.