Government Reconsiders Fertiliser Subsidy Estimate Amid Decline in Urea Import Prices

Government Asserts Comfortable Fertiliser Stocks to Meet Kharif Season Demand

The government has asserted that the fertiliser stocks in the country are comfortable to meet the demand for the ongoing kharif season. According to Aparna S Sharma, additional secretary in the Union Ministry of Chemicals and Fertilisers, India's fertilizer security remains strong, with a comfortable stock position.

The government's fertiliser subsidy estimates for the current fiscal year could be reassessed considering the softening of urea prices in the global markets. The preliminary subsidy estimate of Rs 3.4 lakh crore for 2026-27 was based on the presumption that the trend remains the same. However, the recent tender floated by the government for importing 1.7 million tonnes of urea has received bids for over 6 million tonnes, with the lowest rate of about $445 per tonne from global trading companies. This is more than 50 per cent lower than the prices quoted in the tender floated by Indian Potash Ltd (IPL) in April.

The fall in global urea prices may help in containing the increase in fertiliser subsidy and also securing soil nutrients for the rabi season.