India's Fertiliser Subsidy Bill Expected to Rise by 20% in FY27 Amid Global Price Surge
India expects FY27 annual fertiliser subsidy bill to rise by at least 20%
Business StandardImage: Business Standard
India anticipates a 20% increase in its fertiliser subsidy bill for FY27, reaching approximately ₹170,781 crore due to rising global fertiliser prices linked to the West Asia crisis. The country plans to import 6.4 million tonnes of urea this kharif season, significantly impacting agricultural costs and government spending.
- 01India's FY27 fertiliser subsidy bill is projected to increase by 20%.
- 02The subsidy is expected to reach ₹170,781 crore due to rising global fertiliser prices.
- 03India plans to import 6.4 million tonnes of urea and 1.9 million tonnes of other fertilisers this kharif season.
- 04Despite price hikes, retail prices for urea and di-ammonium phosphate (DAP) will remain unchanged.
- 05Urea availability is currently sufficient, with 7.15 million tonnes available against a requirement of 1.81 million tonnes.
Advertisement
In-Article Ad
India, the world's largest importer of urea, expects its fertiliser subsidy bill for the fiscal year 2027 (FY27) to increase by 20%, amounting to approximately ₹170,781 crore. This rise is attributed to soaring global fertiliser prices driven by the ongoing crisis in West Asia. The Indian government plans to import 6.4 million tonnes of urea and 1.9 million tonnes of other fertilisers during the kharif season. In February, the Centre had initially estimated the FY27 subsidy to be 8.4% lower than the revised estimate of ₹186,460 crore for FY26. Despite the price surge, the retail prices of urea and di-ammonium phosphate (DAP) will remain stable, with urea being sold at ₹266.5 per kg, significantly lower than its actual price of ₹4,000 per 45 kg bag. The additional secretary in the Department of Fertilisers, Aparna S Sharma, indicated that further imports will be evaluated based on domestic production and demand. Current urea availability stands at 7.15 million tonnes, surpassing the requirement of 1.81 million tonnes.
Advertisement
In-Article Ad
The increase in fertiliser subsidies will likely result in higher agricultural costs, affecting farmers' expenses and potentially leading to increased food prices for consumers.
Advertisement
In-Article Ad
Reader Poll
Do you think the government should increase support for farmers amid rising fertiliser costs?
Connecting to poll...
Read the original article
Visit the source for the complete story.



