Cabinet approves continuation of ongoing urea subsidy scheme beyond 12th Five Year Plan


The Cabinet Committee on Economic Affairs approved the proposal of Department of Fertilizers to continue Urea Subsidy Scheme up to 2019-20.

Urea Subsidy

  • Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers with effective from 1st April, 2017.
  • It is wholly financed by the Government of India through Budgetary Support.
  • The continuation of Urea Subsidy Scheme will ensure the timely payment of subsidy to the urea manufacturers resulting in timely availability of urea to farmers.
  • Urea subsidy also includes Imported Urea subsidy which is directed towards import to bridge the gap between assessed demand and indigenous production of urea in the country.
  • It also includes freight subsidy for movement of urea across the country.

Neem Coated Urea

  • Only about 30 to 40% of N2 in the urea is utilized by the plants.
  • Coating of neem oil helps in gradual release of nitrates into soil.
  • From 2015, the Centre made it mandatory on the part all indigenous producers of urea to produce 100% of their total production of subsidised urea with neem coating.


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