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EquityWireFertiliser Subsidy: Fertiliser subsidy likely to rise in FY27, says govt
Fertiliser Subsidy

Fertiliser subsidy likely to rise in FY27, says govt

This story was originally published at 16:14 IST on 4 May 2026
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Informist, Monday, May 4, 2026

 

--Govt: Floated global tender for 1.9 mln tn NPK fertliser 

--CONTEXT: Government officials briefing media on West Asia war 

--Govt: Will certainly see increase in fertliser subsidy FY27 

 

NEW DELHI – India's fertiliser subsidy bill for the ongoing financial year is expected to swell due to a surge in global prices amid the West Asia crisis, Aparna Sharma, additional secretary in the Department of Fertilisers, said at a media briefing on the West Asia war. However, a breakup of how much the cost might rise was not provided.

 

The country plans to import 6.4 million tonnes of urea and 1.9 million tonnes of nitrogen, phosphorus, and potassium fertilisers at higher prices this kharif season. "A global tender in this regard has been floated," Sharma said. Kharif crops are primarily sown during Jun-Jul and harvested in Sept-Oct. In the Union Budget presented in February, the Centre had pegged fertiliser subsidy in FY27 at INR 1.71 trillion.

 

There is sufficient fertiliser stock for the coming kharif season and the government is absorbing the increased cost of imports to insulate farmers from global supply disruptions, Sharma said. 

 

"The expected demand for fertilisers for the kharif season is 39 million tonnes," Sharma said. Against this, the country has over 19.5 million tonnes in stock, about 50% of the projected demand, she said. 

 

Since the West Asia war started in March, India has produced about 4.1 million tonnes of urea, 539,000 tonnes of diammonium phosphate, and nearly 1.4 million tonnes of nitrogen, phosphorus, and potassium fertilisers in March and April, she said. Additionally, the country was also able to import about 1.7 million tonnes of fertilisers during this period, Sharma said. 

 

The ministry set an aim to produce 2.2 million tonnes of urea, 400,000 tonnes of diammonium phosphate, and 800,000 tonnes of nitrogen, phosphorus, and potassium fertilisers in May, she said.  End

 

Reported by Pallavi Singhal

Edited by Avishek Dutta

 

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