Govt hikes urea fertiliser price by Tk 6 per kg

The government has increased the price of urea by Tk 6 per kg both at dealer and farmer levels – a decision that will be effective from 1 August.

The retail price of this fertiliser has been fixed at Tk 20 per kg at the dealer level from Tk 14 while Tk 22 from Tk 16 at the farmer level.

A press release from the agricultural ministry confirmed the matter, adding that the price has been hiked in line with the price at the the international market and to keep the use of Urea at a tolerable level.

The release reads the price of Urea per kg at the international market is Tk 81. Despite the price hike, the government will have to provide a subsidy of Tk 59 per kg – which was Tk 15 in 2005-06.

Currently, over 2.6 million tonnes of Urea is being used, which was 2.5 million tonnes in 2019. Apart from this, the price of Urea at international markets has increased by three to four folds in the last one year, resulting in the increase of subsidy to this sector, said the agricultural ministry.