Fertiliser Subsidy Surge Amid West Asia Crisis

The government's fertiliser subsidy bill for 2026-27 could increase by Rs 70,000 crore to Rs 2.41 lakh crore due to rising import costs amid the West Asia crisis. Despite cost pressures, fertiliser availability for the 2026 kharif season remains steady, aided by diversified import sourcing.

The government's fertiliser subsidy bill for the fiscal year 2026-27 is projected to escalate by Rs 70,000 crore, potentially reaching Rs 2.41 lakh crore, due to soaring import expenses of urea and other fertilisers amidst the ongoing crisis in West Asia, according to a senior official.

Aparna S Sharma, Additional Secretary of the Department of Fertilisers, highlighted during an inter-ministerial briefing that although costs are rising, the availability of fertilisers for the 2026 kharif season remains secure. With current stocks at 200.9 lakh tonne and domestic production running at 80,000 tonnes daily, the shortfall is manageable.

India is diversifying its import sources beyond the Strait of Hormuz, securing significant quantities of key fertilisers and raw materials. Subsidy payments are consistently being settled through the Integrated Fertilizer Management System, ensuring stable market conditions despite challenges.