The government has raised the price of urea by Tk 6 to Tk 22 per kg to keep the use of the fertiliser at a reasonable level in the wake of a global hike in the price of the agri input.
The new price fixed by the Ministry of Agriculture came into effect on Monday, said a press release of the ministry.
The demand for urea this year has been estimated to be 26 lakh tonnes. Of the amount, 10.5 lakh tonnes will be produced in the country and the rest will be imported.
The current price of urea in the international market is Tk 81 per kg. The government will have to pay a subsidy of Tk 59 per kg even after hiking its price. The subsidy on urea fertiliser was only Tk 15 per kg in 2005-06 fiscal year.
The government had lowered the price of diammonium phosphate (DAP) fertiliser from Tk 90 to Tk 16 a kg in phases to reduce the unnecessary and
excessive use of urea as DAP contains 18 percent nitrogen -- the main ingredient of urea.
For this, the use of DAP fertiliser has doubled in the last few years. The use of DAP was 8 lakh tonnes in 2019 while it increased to 16 lakh tonnes at present.
The price of fertiliser has seen a rise for 3-4 times in the international market over the last one year. For this, the subsidy has also increased by almost four times.
During the Aman season (July-September), the demand for urea is 6.19 lakh tonnes while the country has a stock of 7.27 lakh tonnes, about 1 lakh tonne more than the requirement.
The stock of TSP is 3.09 lakh tonnes against the demand for 1.19 lakh tonnes while that of DAP is 6.34 lakh tonnes against the demand for 2.25 lakh tonnes, MOP is 2.20 lakh tonnes against the demand for 1.37 lakh tonnes, according to the ministry.