Government lifts curbs on industrial urea imports

NEW DELHI: The government today did away with restrictions on imports of industrial and technical grade urea, a move aimed at improving ease of doing business in the country and checking diversion of urea.

Earlier, the imports were permitted through state trading enterprises -- Indian Potash Ltd, MMTC and STC.

"Industrial urea/technical grade urea made freely importable -- another step towards ease of doing business in India," Commerce and Industry Minister Nirmala Sitharaman said in a tweet.

Sources said imports of industrial and technical grade urea have been less due to diversion of urea meant for farm sector to industrial usage.

India's urea imports went up 23 per cent to 87.49 lakh tonnes last fiscal on higher demand.

The country, which is among the world's top three consumers of urea, had imported 70.88 MT of the fertiliser in 2013-14.

India produces about 22 million tonnes (MT) of urea as against the annual domestic demand of 30 MT.

Welcoming the decision, Fertiliser Association of India (FAI) Director General Satish Chander said the industry can now directly import urea for its usage and won't have to take government's permission.

Importers will not be entitled to government subsidy on the import of such urea, he added.