Fertilizer Subsidy Bill Likely to Exceed ₹1.71 Lakh Crore Budget Amid West Asia Crisis

A senior official has stated that the fertilizer subsidy bill allocated by the government for the 2026-27 financial year, which began in April, is likely to exceed the budgeted amount of ₹1.71 lakh crore.
The anticipated increase in the subsidy is attributed to the rising cost of imported Urea and other fertilizers resulting from the ongoing crisis in West Asia. During a briefing for the Inter-Ministerial Committee on the situation in West Asia, Aparna S. Sharma, Additional Secretary of the Department of Fertilizers, said, “We are aware that costs have increased significantly. The expenses incurred for Urea and other fertilizers are on an upward trend, and there is no certainty that this trend will not continue.”
Despite supply chain disruptions caused by the West Asian crisis, Sharma assured that the availability of fertilizer for the 2026 Kharif season remains “strong and stable.” March-April Stocks Domestic production reached 67.76 lakh tonnes, including: Urea: 40.72 lakh tonnes, DAP (Di-ammonium Phosphate): 5.39 lakh tonnes, NPK: 13.65 lakh tonnes, SSP: 8 lakh tonnes ,Imports: To supplement domestic production, 17 lakh tonnes were imported through coordinated efforts with the Ministry of Ports, Shipping and Waterways and the Ministry of External Affairs.
For the month of May, the department has set a domestic production target of 22 lakh tonnes of Urea, 4 lakh tonnes of DAP, and 8 lakh tonnes of NPK. Some previously closed Urea plants are set to resume operations as gas supplies have been secured. Global tenders have been processed for Urea imports, with supplies expected to arrive in June. Additionally, separate tenders have been floated for 19 lakh tonnes of NPK fertilizer to meet peak demand. The Department of Agriculture estimates a requirement of 390.54 lakh tonnes of fertilizer for the 2026 Kharif season. States have already stockpiled 195.71 lakh tonnes, which accounts for approximately 50% of the total requirement.