Won't be surprised if FY27 fert subsidy is up by INR 500 bln
Fin min source
This story was originally published at 14:49 IST on 1 May 2026
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--Govt source: Won't be surprised if FY27 fert subsidy goes up by INR 500 bln
--Govt source: Only 1 mo into new fiscal, will rework Budget numbers as we go
--Govt source: FY27 fertiliser subsidy may go up by INR 350 bln
NEW DELHI – The ongoing unrest in West Asia may push up India's fertiliser subsidy by an additional INR 500 billion, a senior finance ministry official said Friday. "As per the current situation, the fertiliser subsidy may go up by INR 350 billion in 2026–27 (Apr-Mar). But we won't be surprised if it goes up by INR 500 billion," the official said.
The government aims to spend INR 1.71 trillion on fertiliser subsidies in FY27. The official said it has been only one month into the new fiscal and closer look will be taken at budget numbers as the year progresses.
The fertiliser sector depends heavily on imported liquefied petroleum gas, and as the naval blockade around the Strait of Hormuz continues, the country may face a shortage of energy supply, reducing throughput. There is no immediate shortage of fertiliser in the country and an associated impact on crop output, but the sector may do poorly, ICRA Ratings Ltd. had said in a report.
On Thursday, the government had said that India has sufficient fertiliser stock to meet the demand for kharif season. Against the requirement of 39.1 million tonnes, the country has 19.34 million tonnes in stock, Aparna Sharma, additional secretary in the Department of Fertilisers had said. The government has also floated a global tender for 2.5 million tonnes of urea and supplies will start this month. End
Reported by Sagar Sen and Priyasmita Dutta
Edited by Akul Nishant Akhoury
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