India and Pakistan plan large fertilizer subsidy hikes amid rising costs

India’s Ministry of Fertilizers has asked the Finance Ministry to double the current fiscal year’s fertilizer subsidy, seeking to raise the allocation from about Rs 1.71 lakh crore to roughly Rs 3 lakh crore. The proposal cites the West Asia conflict, including the closure of the Strait of Hormuz, which has driven up global fertilizer import prices and complicated tendering.

Pakistan’s federal government is considering a separate Rs 20 billion subsidy for the fertilizer sector in the upcoming budget. The aid is intended to resolve longstanding gas‑price disputes between energy and fertilizer producers, maintain uninterrupted production, and keep fertilizer prices stable for farmers.

Both countries aim to preserve adequate fertilizer supplies for upcoming planting seasons and to temper potential food‑price inflation caused by higher input costs.