Mumbai, Feb 20: Welcoming the Union Budget 2026, the Fertiliser Association of India (FAI) said the government’s continued commitment to fertiliser subsidies, farm-sector investments and technology-led agriculture provides a strong foundation to accelerate productivity, sustainability and nutrient security in line with the vision of Viksit Bharat 2047.
With a substantial allocation for fertiliser subsidies, significant outlay for agricultural development schemes, and projected GDP growth of 6.8–7.2%, FAI described the financial framework as robust and growth-oriented.
FAI emphasised that structural measures such as policy continuity, logistics expansion through 20 new national waterways, and the proposed rationalisation of tariff and GST structures will streamline costs, improve cash flows, and strengthen the operating environment for the fertiliser industry — ensuring timely and affordable access to nutrients for farmers across the country.
Key Fertiliser Subsidy Allocations (2026–27)
- Total Fertiliser Subsidy
- Urea Subsidy
- Phosphatic & Potassic (P&K) Fertilisers Subsidy
- Organic Fertilisers & Bio-inputs (Supporting soil health and balanced nutrient use)
FAI noted that continued subsidy support remains critical in insulating farmers from volatility in international raw material and finished fertiliser prices.
Major Agriculture Sector Allocations
- PM-Kisan
- Modified Interest Subvention Scheme (for concessional agricultural loans)
- PM Fasal Bima Yojana
- PM-AASHA
- Agriculture Infrastructure Fund
FAI stated that these allocations collectively strengthen farm incomes, credit availability, crop protection, and infrastructure development — all of which support balanced fertiliser consumption and long-term agricultural sustainability.
Structural Reforms and Sectoral Boost
FAI highlighted several structural announcements with long-term implications for the fertiliser ecosystem:
- Policy Continuity: Ensuring uninterrupted fertiliser availability at affordable prices through additional subsidy support when required.
- Logistics Development: Introduction of 20 new national waterways linking mineral-rich regions with ports; coastal cargo share projected to increase from 6% to 12% by 2027 — reducing freight costs and improving supply chain efficiency.
- GST Rationalisation: Simplification of tariff structures and addressing inverted GST issues to improve liquidity and operating efficiency.
- Technology Adoption: Launch of Bharat-VISTAAR, a multilingual AI platform integrating Agristack with ICAR practices to promote precision farming and optimal fertiliser use.
Strengthening Nutrient Security
FAI reiterated that the combination of fiscal support, infrastructure development, policy continuity, and technology integration positions the fertiliser and agriculture sectors for sustained growth.
The association expressed confidence that the Budget 2026 framework will not only enhance productivity and sustainability but also strengthen India’s nutrient security, supporting the broader goal of building a resilient and self-reliant agricultural ecosystem.