The fertiliser ministry has sought a 100% increase in the fertiliser subsidy budget for FY27 as the West Asia conflict drives up global fertiliser prices and import costs, according to government sources, PTI reported.Sources said the Department of Fertilizers has approached the Finance Ministry seeking a doubling of the fertiliser subsidy from the budgeted Rs 1.71 lakh crore for the current financial year.The move comes amid concerns that disruptions linked to the West Asia crisis could significantly increase the government’s subsidy burden. Last month, a senior Department of Fertilizers official had indicated that the fertiliser subsidy bill could cross Rs 3 lakh crore this fiscal if the disruptions persist.However, sources said the final subsidy requirement could moderate somewhat as domestic fertiliser production continues to rise.The government provides substantial subsidies on urea and phosphatic and potassic (P&K) fertilisers. Currently, neem-coated urea is sold at Rs 242 per 45-kg bag, while di-ammonium phosphate (DAP) is priced at Rs 1,350 per 50-kg bag.According to sources, any prolonged disruption in shipping through the Strait of Hormuz would affect India’s fertiliser import bill and make the global procurement process more challenging.They said international fertiliser prices are rising while the overall supply pool in global markets is shrinking.Sources identified two key concerns for policymakers: ensuring uninterrupted supplies through a complex tendering process and managing the pace and scale of fertiliser price increases.Despite these challenges, government sources maintained that adequate fertiliser stocks are available for the ongoing kharif sowing season.On Monday, Aparna S Sharma, Additional Secretary in the Union Ministry of Chemicals and Fertilizers, said, “For kharif 2026, the fertiliser requirement has been reassessed by the Department of Agriculture at 383.9 lakh tonnes and against this, the stock as on today is 197.56 lakh tonnes”.The available stock is more than 51% of the kharif season requirement, significantly higher than the normal level of around 33%, she added.India has also been increasing domestic output to reduce import dependence. In 2025, nearly 73% of the country’s fertiliser requirement was met through domestic production.India continues to import significant quantities of urea and DAP to meet local demand.Total domestic fertiliser production, including urea, DAP, NPK and SSP, increased from 433.29 lakh tonnes in 2021 to a record 524.62 lakh tonnes in 2025.Urea production rose from 225 lakh tonnes in 2014-15 to 306.67 lakh tonnes in 2024-25. However, India still imported more than 100 lakh tonnes of urea in the last financial year to bridge the demand gap.
