Fertilizer Subsidy Likely to Cross ₹3 Lakh Crore Mark

New Delhi: Fertilizer subsidies are expected to exceed the ₹3 lakh crore mark during the current fiscal year due to rising global market prices and a weak exchange rate. In light of this, the Central Government has asked states to take appropriate measures to curb the excessive use of chemical fertilizers.

According to official sources, the country's outstanding stock of chemical fertilizers as of October 1, 2026, is projected to be at a three-year high. Despite a healthy domestic production scenario, large-scale imports will still be required, leading to a significant rise in the subsidy burden.

The Union Fertilizer Secretary stated that fertilizer prices and the associated subsidies have surged sharply following the outbreak of the US-Iran conflict. Prior to the conflict, the subsidy on a 45 kg bag of urea was ₹1,350; this has now more than doubled (rising by 106%) to ₹2,775.

Similarly, the subsidy on a 50 kg bag of DAP has increased by 61%, rising from ₹2,102 to ₹3,523. Consequently, the total fertilizer subsidy bill is likely to surpass ₹3 lakh crore. Global fertilizer market prices are being closely monitored.