The government plans to raise fixed cost payments for 30 gas-based urea manufacturers by the end of this year, Fertilisers Secretary Rajat Kumar Mishra said on Wednesday, addressing industry concerns over costs unchanged for nearly 25 years.

Fixed costs, which cover working capital needs including salaries and plant maintenance, have not been revised since 2000 despite significant inflation, Mishra noted at a Fertiliser Association of India (FAI) event.

"We are going to decide very soon… before the end of the year, we will be able to do it," he said, adding the decision will be made at the ministry level without cabinet approval.

The government is yet to decide if the increased costs will be effective from April 1, 2025, or restore the Rs 2,300 per tonne minimum fixed cost floor retrospectively from April 1, 2014. Companies currently receive Rs 2,800-3,000 per tonne, with an additional Rs 350 per tonne added in March 2020.

FAI Chairman S Shankarsubramanian said timely revisions are crucial for sustaining operations and encouraging investments. Mishra added that domestic production and imports from Saudi Arabia, Morocco, and Russia ensure strong fertiliser supply. He also highlighted nano-urea as a cost-effective alternative and stressed India’s push for balanced fertiliser use to address sustainability challenges.