Centre uses 40% of annual fertiliser subsidy in first 3.5 months
The Indian government has utilized 40% of its annual fertilizer subsidy budget in just over three months, signaling that total spending will likely exceed initial estimates. Rising global prices for soil nutrients, exacerbated by conflict in West Asia, are driving the increased expenditure.
Why it matters
High fertilizer subsidies are critical for India's agricultural sector, but rising costs pose a significant challenge to the national fiscal budget.
NEW DELHI: Govt has spent Rs 70,709 crore, nearly 40% of the fertiliser subsidy allocated for 2026-27, in the first three-and-a-half months of the current fiscal year, indicating the subsidy bill is set to exceed the budget estimate due to the conflict in West Asia.The fertiliser department provided this information to Rajya Sabha in a written reply to a question. “To reduce dependence on a limited number of countries for fertiliser imports, the department (fertiliser) has taken several measures to diversify import sources by engaging with Indian missions in various countries to identify additional suppliers and strengthen the fertiliser supply chain, with a view to ensuring the timely and adequate availability of fertilisers across the country,” it said while adding that sufficient funds are available to meet the subsidy expenditure.Govt has allocated little less than Rs 1.8 lakh crore fertiliser subsidy for 2026-27.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in