Govt Sources: Cabinet May Approve New Urea Policy; ₹9,000 Crore Subsidy Savings Expected

According to government sources, the Union Cabinet is likely to approve a new investment policy for the urea sector along with the continuation of the urea subsidy for FY27. The proposed reforms aim to boost domestic urea production, reduce import dependence, and generate annual subsidy savings of nearly ₹9,000 crore over the coming years. Chetan Bhutani, Business Today, explains that the policy could encourage fresh investments through new brownfield and greenfield projects, while offering an eight-year government buyback guarantee for producers. If approved, the reforms could strengthen fertilizer security, reduce imports, and improve India's long-term self-reliance in urea production.