India's Fertilizer Subsidy Expected to Rise 20% Amid Global Price Surge
India's fertilizer subsidy may jump 20% as Hormuz crisis spikes prices
Mint
Image: Mint
India's fertilizer subsidy bill is projected to increase by 20% this financial year due to rising global prices linked to the Strait of Hormuz blockade. The government's subsidy, crucial for farmers, is expected to reach ₹1.86 trillion (approximately $22.4 billion USD) as it continues to support agricultural viability despite soaring costs.
- 01Fertilizer subsidy bill likely to rise by 20% this financial year.
- 02Current subsidy stands at ₹1.86 trillion (approximately $22.4 billion USD).
- 03India relies on imports for 60% of its di-ammonium phosphate needs.
- 04Government assures no change in maximum retail price for farmers.
- 05Current fertilizer stock is 49% of the required amount for the kharif season.
Advertisement
In-Article Ad
India's fertilizer subsidy is expected to increase by 20% this financial year due to a spike in global prices caused by the blockade of the Strait of Hormuz. The subsidy is projected to reach ₹1.86 trillion (approximately $22.4 billion USD), up from an estimated ₹1.71 trillion for the current year. Aparna Sharma, joint secretary in the Department of Fertilizers, confirmed that while global fertilizer prices have nearly doubled, the maximum retail price (MRP) for farmers will remain unchanged. This subsidy is vital for maintaining agricultural viability and stabilizing food prices, as it reduces the cost of essential nutrients like urea and di-ammonium phosphate for farmers. Currently, India imports about 60% of its di-ammonium phosphate and 15% of its urea needs, highlighting its reliance on global markets. The country has sufficient fertilizer stocks, with 19.02 million tonnes available, which is 49% of the required amount for the upcoming kharif season. The government is actively monitoring the situation and ensuring adequate supply amid rising prices.
Advertisement
In-Article Ad
The increase in fertilizer subsidies will help farmers maintain affordable prices for essential nutrients, ensuring agricultural viability and stable food prices despite rising global costs.
Advertisement
In-Article Ad
Reader Poll
Do you think the government should increase fertilizer subsidies to support farmers?
Connecting to poll...
More about Department of Fertilizers
Read the original article
Visit the source for the complete story.



