Officials from the India union Ministry for Chemicals and Fertilizers have unofficially dismissed reports indicating that there will be an increase in the prices of urea.

According to ministry officials, the prices of urea, which is the most widely used soil nutrient in the country, are unlikely to be changes, as claimed by some media reports. Two media reports had suggested that the government is planning to scrap a subsidy and would result in a price rise of 40 percent for urea.

The unnamed officials said that there are no proposals in the ministry to increase the prices yet. The urea prices were last revised in 2010 and the government has maintained the level since then.

The Economic Times had reported that the authorities might consider hike in urea prices ahead of state elections. The cost if importing urea has increased due to the continuing fall in the value of rupee.

Meanwhile, stocks in the Fertiliser sector at the Bombay Stock Exchange rose as much as 5 per cent on the indications of a rice rise on Monday. The shares of Rashtriya Chemicals and Fertilisers rose 4 per cent while Chambal Fertiliser was 2.5 per cent higher.

Coromandel International and Zuari Industries increased 2.5 per cent each even as the benchmark Sensex was down 0.5 per cent this early morning.