“The fertiliser subsidy could stay nearer to earlier 12 months, given our dependency on imports nonetheless stay excessive and the steep improve within the costs of fertilisers within the worldwide markets,” a senior finance ministry official informed ET.
The federal government's estimate of the subsidy invoice continues to be decrease than business projection of ₹2.5 lakh crore, primarily based on increased import throughout April to September and the anticipation of upper consumption throughout rabi season.
“We'll be certain that the farmers get ample fertiliser and stay insulated in opposition to international value hike,” the official stated.
The federal government can be conserving an in depth watch on diversion of fertilisers to different industries, which brought on some scarcity within the earlier season, the particular person stated.
The revised subsidy invoice estimate consists of ₹1.17 lakh crore for urea and ₹75,000 crore for non-urea fertilisers.The Centre had budgeted ₹1.67 for fertiliser subsidy for 2025-26, decrease than ₹1.91 lakh crore subsidy invoice within the earlier 12 months.”The soil moisture ranges are wonderful, which implies farmers will go in for aggressive rabi planting, particularly of wheat, a crop that calls for vital urea and phosphate vitamins,” stated a senior government at a significant fertiliser firm, who didn't want to be recognized.
The import of urea elevated 138.8% and that of DAP rose 94.5% throughout April to September 2025 in comparison with the identical interval final 12 months, in line with business estimates. Nonetheless, home manufacturing of urea and DAP went down 5.6% and seven%, respectively, throughout the identical interval.
Imports account for 60% of India's annual DAP consumption.
An business skilled stated total imports of fertilisers in FY26 might exceed 18 metric tonnes, with urea accounting for over 10 metric tonnes of cargo.
In FY25, fertiliser imports of all variants have been round 16 metric tonnes.
India recorded gross sales of 38 metric tonnes of urea final fiscal, together with home manufacturing of 30.6 metric tonnes and imports of 5.7 metric tonnes.
The federal government on Tuesday authorised ₹37,952 crore subsidy for several types of fertilisers for the 2025-26 rabi season that started on October 1 and can proceed until the top of March 2026.
Whereas it elevated the charges for phosphate and sulphur, the charges for nitrogen and potash are the identical because the kharif season.
The subsidy to fertiliser firms is paid primarily based on precise gross sales, so the precise expenditure on fertilisers will depend upon the sale of assorted soil vitamins throughout October-March.
Fertilisers in India are managed by the federal government.
