Future-Proofing India's Fertiliser Industry: Strategic Budget Recommendations for 2026-27

The Fertiliser Association of India (FAI) is urging changes in customs duties and advocating for urea's inclusion under a nutrient-based subsidy framework in the 2026-27 budget. Their recommendations emphasize balanced fertilisation, streamlined tax policies, and strategic investments in domestic and overseas fertiliser capacities for sustainable farming and enhanced food security.

The Fertiliser Association of India (FAI) has called for a series of measures in the upcoming Union Budget 2026-27, including rationalisation of customs duties on key fertiliser raw materials and incorporating urea under a nutrient-based subsidy framework. The association aims to promote balanced fertilisation to protect soil health and reduce price disparities.

FAI has identified the need to address high customs duties on ammonia, phosphoric acid, and other inputs, which contribute to increased production costs. It also seeks alleviation from the Agriculture Infrastructure and Development Cess, alongside resolving issues caused by inverted GST duty structures that lead to excess input tax credit.

Amid rising input costs and global market volatility, FAI underscores the need for policies that support domestic manufacturing and strategic international sourcing. It advocates for a predictable subsidy regime and rational taxation to ensure affordability for farmers and viability for producers, thereby enhancing India's fertiliser security.

(With inputs from agencies.)