Fertilizer Subsidy Soars Amid West Asia Crisis

The 2026-27 fertilizer subsidy bill may exceed the budgeted Rs 1.71 lakh crore due to rising costs triggered by the West Asia crisis. Despite disruptions, fertilizer availability is stable for kharif 2026, with domestic production targets and global tenders in place to meet demand.

The government's fertilizer subsidy bill for the fiscal year 2026-27 is projected to surpass the initially planned budget of Rs 1.71 lakh crore. This increase is attributed to escalating costs of importing urea and other fertilizers, caused by the ongoing conflict in West Asia, a senior official disclosed on Monday.

According to Aparna S Sharma, Additional Secretary in the Department of Fertilisers, while the costs have risen significantly affecting both urea and other fertilizers, the availability for the kharif 2026 season remains robust. Recent production figures for March-April indicate a strong domestic output, alongside strategic imports facilitated by inter-ministerial collaboration.

For May, production targets are set to ensure supply stability, with previously shuttered urea plants resuming operations. Global tenders for urea and NPK fertilizers are underway to address peak demand, as improved planning and advance stocking strategies continue to be implemented at both central and state levels.