India Increases Non-Urea Fertiliser Subsidy Amid Rising Global Prices
Centre hikes non-urea fertiliser subsidy 10-21% amid West Asia crisis
Business Standard
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In response to soaring fertiliser prices due to the West Asia crisis, the Indian government has approved a subsidy increase of 10-21% for non-urea fertilisers for the kharif 2026 season. This decision is expected to cost approximately ₹41,534 crore (around $5 billion USD) and aims to stabilize domestic fertiliser prices amidst global supply chain disruptions.
- 01The Indian government raised non-urea fertiliser subsidies by 10-21% for kharif 2026.
- 02The subsidy increase will cost the exchequer around ₹41,534 crore (approximately $5 billion USD).
- 03The price of di-ammonium phosphate (DAP) will remain at ₹1,350 per 50 kg bag due to the subsidy.
- 04India's fertiliser economy is heavily reliant on global supply chains, with 68-70% dependence on imports.
- 05The increase in subsidy rates is a response to rising global fertiliser prices amid geopolitical tensions.
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The Union Cabinet of India approved a 10-21% increase in subsidies for non-urea fertilisers for the kharif 2026 season, following a sharp rise in global fertiliser prices due to the ongoing crisis in West Asia. This decision, made during a Cabinet meeting chaired by Prime Minister Narendra Modi, will cost the Indian government approximately ₹41,534 crore (around $5 billion USD), which is about 12% more than the previous season's expenditure. The subsidy adjustments mean that the price of di-ammonium phosphate (DAP), a crucial fertiliser in India, will remain at ₹1,350 per 50 kg bag, with the government covering the additional costs. The Centre had originally budgeted ₹54,000 crore for non-urea fertilisers in FY27, which was 10% lower than the revised estimate for FY26. The increase in subsidy rates includes a 10% rise for nitrogen, and a 21% increase for both phosphorus and sulphur. India's fertiliser sector is significantly impacted by global supply chains, with 68-70% of its fertiliser inputs reliant on imports, making it vulnerable to geopolitical disruptions.
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The subsidy increase is aimed at stabilizing fertiliser prices for farmers, ensuring they can afford essential inputs for crop production amidst rising global prices.
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