Finance Ministry Approves Increased Fertiliser Subsidy, Establishes Buffer Stock Amid Global Market Uncertainty

Government Takes Measures to Ensure Fertiliser Supplies Ahead of Kharif Sowing Season

The Finance Ministry has approved additional fertiliser subsidy for the June quarter as the West Asia crisis pushes up global prices and raises concerns over supplies ahead of the kharif sowing season, a government official said. The government has stepped up procurement to avoid shortages, resulting in a significant increase in fertiliser availability.

According to the Department of Fertilisers, fertiliser availability has increased by nearly 21 lakh tonnes, while an additional 7 lakh tonnes of NPK (Nitrogen, Phosphorus, and potassium) fertilisers are expected to arrive at Indian ports in May and June. Monthly subsidy requirements in the April-June quarter are expected to be Rs 10,000-15,000 crore higher than a year earlier due to the West Asia crisis, according to estimates by the Department of Fertilisers.

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The government has allocated an estimated Rs 1.71 lakh crore for fertilisers in the Union Budget 2026-27 to ensure affordable supplies for farmers. However, the Department of Fertilisers believes it is too early to estimate the full-year fertiliser subsidy, as the situation in West Asia continues to evolve.

Despite the West Asia crisis, the government has kept the selling price of fertilisers for farmers unchanged. Urea prices have nearly doubled since the start of the crisis, but the government has ensured that farmers continue to receive fertilisers at affordable prices. The government has also secured an additional 7 lakh tonnes of NPK fertilisers that are expected to arrive at Indian ports during May and June, further strengthening supplies ahead of the sowing season.

According to the latest data from the Department of Fertilisers, total fertiliser stock available in the country currently stands at 199.65 lakh tonnes, compared to 178.58 lakh tonnes during the same period last year. This means overall availability has increased by nearly 21 lakh tonnes. Urea stocks have increased to 76.65 lakh tonnes from 75.48 lakh tonnes last year, while DAP stocks have risen sharply to 22.52 lakh tonnes from 14.87 lakh tonnes.

India has also increased fertiliser availability through higher domestic production and imports despite global supply concerns linked to the West Asia crisis. Official data shows that around 97 lakh metric tonnes (LMT) of fertilisers have been added to availability after the crisis through domestic production and imports reaching Indian ports. Domestic fertiliser production after the crisis stands at 76.78 LMT, while imports reaching Indian ports account for another 19.94 LMT.

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The government's efforts to ensure affordable fertiliser supplies to farmers have been successful, with the overall availability of fertilisers increasing significantly. The government is prepared for full demand and consumption to ensure there is no shortage during the sowing season.