New Delhi, Jan 16 (IANS) The Indian government Monday spiked newspaper reports that it was seeking to increase by 40 percent the prices of urea, the most widely used soil nutrient in the country.

“Reports in the media regarding increase in price of urea by 40 percent are factually incorrect, unfounded and baseless and no such proposal is under consideration of the government,” said Minister of State for Fertiliser Srikant Kumer Jena.

The retail price of urea is notified by the government and is currently at Rs.5,310 per tonne. Urea prices were last revised in April 2010 from Rs.4,830 per tonne to the current level.

Although an empowered group of minister has approved for the key fertiliser to be de-regulated, the government is yet to take a call on the implementation of the reform. Urea is the only controlled fertiliser.

Two newspapers had reported that the government planned to increase prices of urea to reduce a mounting subsidy burden. The total fertliser subsidy bill is expected to be around Rs.54,976.68 crore during the current fiscal.

Demand for the fertiliser is currently at about 28 million tonnes of which almost 22 million tonnes is met through domestic sources.

The government had freed phosphatic and potassium fertiliser prices last fiscal under the Nutrient-Based Subsidy (NBS) Policy.