The Centre has approved additional fertiliser subsidy support for the April-June quarter of 2026 as rising global prices, triggered by the ongoing West Asia crisis, push up the government's subsidy burden.
According to estimates by the Department of Fertilisers, the subsidy requirement during the current quarter could be higher by Rs 10,000-15,000 crore every month compared to the same period last year.
The estimates were shared with the Department of Expenditure and have received approval from the Finance Ministry.
Citing an official, Bloomberg reported that India's fertiliser subsidy is seen rising by Rs 10,000-15,000 crore per month amid elevated global fertiliser prices.
The rise in subsidy outgo comes amid a sharp increase in international fertiliser prices, particularly urea, prices of which have nearly doubled since tensions escalated in West Asia. Despite the spike, the government has not raised fertiliser prices for farmers, continuing to shield them from global volatility.
With fertiliser subsidies released to companies on a weekly basis, the Ministry of Fertilisers has sought immediate financial support to maintain uninterrupted supplies ahead of the sowing season.
The Union Budget for 2026-27 had earmarked Rs 1.71 lakh crore towards fertiliser subsidies.
However, officials in the Department of Fertilisers said it remains too early to estimate the total subsidy requirement for the full financial year as the geopolitical situation remains uncertain.
Even as Prime Minister Narendra Modi has urged farmers to reduce fertiliser usage by half, the government is simultaneously preparing to meet full seasonal demand to avoid shortages.
Latest figures from the Department of Fertilisers show total fertiliser stocks in the country have risen to 199.65 lakh tonnes, up from 178.58 lakh tonnes during the corresponding period last year, an increase of nearly 21 lakh tonnes.
Urea stocks currently stand at 76.65 lakh tonnes against 75.48 lakh tonnes last year.
DAP stocks have climbed sharply to 22.52 lakh tonnes from 14.87 lakh tonnes, while NPK stocks increased to 60.42 lakh tonnes from 48.32 lakh tonnes.
MOP availability has also edged up to 13.07 lakh tonnes from 12.99 lakh tonnes.
To strengthen supplies amid global uncertainty, India has ramped up both domestic production and imports.
Official data shows nearly 97 lakh metric tonnes (LMT) of fertilisers have been added to the system after the onset of the crisis through domestic output and imports arriving at Indian ports.
Domestic production accounted for 76.78 LMT, while imports contributed another 19.94 LMT.
Among key nutrients, domestic urea production stood at 46.28 LMT, supplemented by imports of 12.51 LMT.
DAP production was recorded at 6.20 LMT alongside imports of 0.76 LMT. NPK production reached 15.57 LMT with imports of 3.79 LMT, while SSP production stood at 8.73 LMT. MOP supplies came entirely through imports of 2.88 LMT.
The government has also secured an additional 7 LMT of NPK fertilisers, expected to arrive at Indian ports in May and June, to further boost availability ahead of the kharif sowing season.
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