Madanapalle, Oct. 2 -- The Centre has been absorbing a subsidy of around Rs 2,700 on every bag of urea when global costs have risen as high as Rs 3,000, keeping the price paid by farmers at around Rs 300, Union Finance Minister Nirmala Sitharaman said on Friday.

Addressing a gathering at Madanapalle in Andhra Pradesh, Sitharaman said the government had sought to shield farmers from the sharp rise in fertiliser costs caused by global disruptions, including the pandemic and geopolitical tensions in West Asia.

"Despite severe global headwinds, the pandemic and geopolitical strife in West Asia driving import costs up to Rs 3,000 per bag of urea, PM ensured our farmers continued to receive it at just Rs 300, providing a subsidy of Rs 2,700 p...