Fertiliser subsidy bill may rise in FY27 amid global cost pressures

fertilizer
Pic Credit: Pexel

New Delhi, May 19: India’s fertiliser subsidy bill is expected to rise significantly in 2026–27, with officials estimating an increase of around ₹70,000 crore, taking the total outlay to nearly ₹2.41 trillion.

The projected jump is mainly attributed to higher import costs of urea and other fertilisers, driven by ongoing geopolitical tensions in West Asia that have disrupted global supply chains and pushed up international prices.

According to senior officials from the Department of Fertilisers, the estimate reflects current global market conditions and cost pressures being faced in procurement.

Despite the expected increase in expenditure, the government has assured that fertiliser availability for the 2026 kharif season will remain adequate. Officials said supply arrangements are being closely managed to ensure farmers do not face shortages.

The situation continues to be monitored, as global developments remain a key factor influencing both fertiliser prices and India’s subsidy burden.