India's fertilizer subsidy bill to exceed Rs 1.71 lakh crore amid West Asia crisis

The Indian government expects its fertilizer subsidy bill for the 2026‑27 fiscal year to go beyond the allocated Rs 1.71 lakh crore. A senior ministry official linked the rise to higher costs of imported urea and other fertilizers caused by the ongoing West Asia crisis.

Despite supply‑chain disruptions, officials said fertilizer availability for the kharif 2026 season remains "strong and stable." Domestic production in March‑April totaled 67.76 lakh tonnes (including 40.72 lakh tonnes of urea), supplemented by 17 lakh tonnes of imports managed through coordinated port and external‑affairs efforts. Targets for May include 22 lakh tonnes of urea, 4 lakh tonnes of DAP and 8 lakh tonnes of NPK. Global tenders for additional urea and 19 lakh tonnes of NPK have been floated. The Department of Agriculture estimates a requirement of 390.54 lakh tonnes for kharif 2026; state governments have already stocked roughly 195.71 lakh tonnes, about half the need. A 24‑hour contingency cell will be set up to oversee redistribution as the season approaches.