Urea production costs to rise after 25 years; farmers' burden looms.

• Central government plans to revise fixed costs for gas-based urea production, a change not made in 25 years despite rising inflation.
• The Fertilizers Department can approve the cost revision without cabinet approval.
• Increased production costs may lead to higher urea prices for farmers, potentially requiring increased government subsidies to mitigate the burden.
• Currently, the government heavily subsidizes urea, covering 80% of its cost (Rs. 1,369 per bag).
• Experts warn a price hike of Rs. 400-500 per bag could increase cultivation costs by Rs. 2,500 per acre, impacting small farmers and potentially reducing crop yields by 8-15%.

Why It Matters: Rising urea production costs after 25 years could burden farmers or increase government subsidies.