Archive · 2 Feb 2026
Fertiliser Subsidy Surge Due to Consumption and Global Factors
The Indian government's fertiliser subsidy bill has increased a lot.
They planned to spend Rs 1,67,887.20 crore, but now they need Rs 1,86,460 crore.
This is because farmers are using more urea and other fertilisers, and the prices of these fertilisers are going up worldwide.
The rupee is also getting weaker, which makes imports more expensive.
The government is worried that they might need to spend even more in the next year.
Some fertilisers like DAP are in short supply, and farmers are using other types instead.
All these things together are making the subsidy bill bigger.
Fertiliser subsidy bill for FY25-26 exceeds Budget Estimate by Rs 18,500 crore.
Urea consumption has increased from 30 million tonnes in 2017-18 to a projected 40 million tonnes in FY25-26.
DAP consumption has decreased from 11.9 million tonnes in 2020-21 to a projected 8.9 million tonnes in FY25-26.
Global prices for fertilisers and intermediates have increased due to geopolitical tensions and supply disruptions.
Weakening rupee adds to the government's fiscal challenge in controlling the fertiliser subsidy bill.
- Who
- Indian government and farmers
- What
- Increase in fertiliser subsidy due to higher consumption and global factors
- When
- FY25-26 and projected for FY27
- Where
- India
- Why
- Under-pricing of urea and DAP, global price increases, and a weakening rupee
- Budget Estimate for FY25-26
- Rs 1,86,460 crore
- Urea Subsidy in FY25-26
- Rs 1,26,460 crore
- Other Fertiliser Subsidy in FY25-26
- Rs 60,000 crore
- Projected Fertiliser Subsidy for FY27
- Rs 1,70,799 crore
- Urea Consumption in FY20-21
- 35 million tonnes
- Projected Urea Consumption in FY25-26
- 40 million tonnes
- DAP Consumption in FY24-25
- 9.3 million tonnes
- Projected DAP Consumption in FY25-26
- 8.9 million tonnes
