Big bonanza for UP farmers as Adityanath govt cuts urea prices by 10%

State exchequer to take a hit of Rs 1,000 crore in VAT kitty

Economy policy: In a major boost to the farm sector just months ahead of the Lok Sabha elections 2019, the Yogi Adityanath government has cut the urea prices by more than 10 per cent in Uttar Pradesh.

The state urea prices were higher compared to other states, owing to the policy of slapping additional Value Added Tax (VAT) on natural gas. Acceding to the long-pending farmers’ demand to bring urea prices at par with other states, Yogi Adityanath government has decided to pare the prices. Now, a 45 kg bag of urea that retailed at Rs 299 would sell for Rs 266.50, while the 50 kg urea bag that was earlier sold for Rs 330.50 would be available to farmers for nearly Rs 299.

The new rates would be applicable from Saturday, a state government spokesperson said last night adding that the move was aimed at supplementing the wider roadmap of doubling farmers’ income by 2022.

Earlier, there were three VAT slabs with the piped natural gas being taxed at 26 per cent, including 5 per cent additional levy. Now, the VAT on natural gas has been rationalised from 21 per cent to 14.5 per cent and the additional VAT of 5 per cent waived off. This VAT cut would impact the state exchequer by almost Rs 1,000 crore per annum.

Contain Source: Business Standard or BS