- The Ministry of Fertilisers seeks Rs 3 lakh crore subsidy amid West Asia crisis concerns
- Finance Ministry reviews subsidy request as global fertiliser prices remain high
- Budget 2026-27 allocated Rs 1.71 lakh crore, but costs may rise sharply if crisis continues
The Ministry of Fertilisers has sought full subsidy support from the government, estimated at around Rs 3 lakh crore, government sources told NDTV Profit. This comes amid concerns that the ongoing West Asia crisis could sharply increase the country's fertiliser subsidy burden.
According to sources, the Finance Ministry is currently reviewing the request as global fertiliser prices continue to remain elevated due to geopolitical disruptions and supply chain uncertainties.
The Union Budget for 2026-27 had earmarked Rs 1.71 lakh crore towards fertiliser subsidies. However, officials now warn that the actual subsidy requirement could be significantly higher if the conflict in West Asia persists and keeps international prices of key fertilisers elevated.
Speaking at an event organised by the Indian Council for Research on International Economic Relations (ICRIER) in May, Krishna Kant Pathak, Joint Secretary in the Department of Fertilizers, said the government's fertiliser subsidy burden could exceed Rs 3 lakh crore in the current financial year if current market conditions continue.
"The cost, which prior to this war situation was almost Rs 2 lakh crore in subsidies, will grow substantially, and it will be a burden for us," Pathak said.
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"It could be more than Rs 3 lakh crore if the problem persists," he added, while noting that it remains difficult to accurately estimate the final subsidy bill at this stage.
The warning comes as global prices of urea, Di-Ammonium Phosphate (DAP) and other key soil nutrients have surged amid concerns over supply disruptions and rising input costs. India, one of the world's largest fertiliser consumers, relies heavily on imports to meet domestic demand, making it vulnerable to international price fluctuations.
Despite the concerns over rising costs, government officials have maintained that fertiliser availability remains comfortable ahead of the crucial Kharif sowing season.
At an inter-ministerial briefing on developments in West Asia in May, Aparna S. Sharma, Additional Secretary in the Department of Fertilizers, said the country currently has adequate fertiliser supplies to meet agricultural demand.
"The overall stock position of fertiliser in the country remains comfortable," Sharma said.
According to official data, against the projected Kharif season requirement of 390.54 lakh tonnes, fertiliser stocks currently stand at 200.12 lakh tonnes. The inventory level represents more than 50% of the expected seasonal demand, significantly above the typical stock coverage of around 33%.
Pathak also noted that India has secured supplies through long-term agreements with multiple countries and currently holds fertiliser stocks of nearly 20 million tonnes. However, he cautioned that ensuring uninterrupted availability comes at a rising fiscal cost.
The Department of Fertilizers has also raised concerns over the diversion of subsidised urea for industrial use, a long-standing challenge that adds to the subsidy burden.
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