India's fertiliser subsidy bill for 2026-27 may surge by ₹70,000 crore to ₹2.41 lakh crore, driven by rising import costs of urea and other fertilisers amid the ongoing West Asia crisis, according to a senior government official. As reported by The Times of India, Aparna S Sharma, additional secretary, Department of Fertilisers, stated that the subsidy bill will increase but declined to specify the exact percentage increase. When asked about the potential ₹70,000 crore increase, Sharma remarked 'maybe' during an inter-ministerial briefing on West Asia developments on Monday (May 18, 2026).
If the actual subsidy numbers come close to current estimates, this would mean that India's FY27 fertiliser subsidy could be among the highest in recent years. According to The Times of India, the last time India spent more on fertiliser subsidy than what is being projected for FY27 was in FY23, when the country spent more than ₹251,000 crore in subsidies in light of the Russia-Ukraine war. The budgetary allocation for fertiliser subsidies in 2026-27 stands at ₹1.71 lakh crore, but analysts predict this will far exceed current estimates due to rising import costs and geopolitical disruptions. Despite the cost pressures, Sharma noted that fertiliser availability for the 2026 kharif season remains 'comfortable', with stocks exceeding 51% of the total requirement of 390 lakh tonnes.
Fertiliser production in India, particularly urea, declined in fiscal year 2026, reversing recent growth due to reduced natural gas availability caused by geopolitical instability in West Asia. As reported by The Times of India, this has significantly increased India's dependence on fertiliser imports, which rose to an estimated 34% in FY26 from about 23% in FY25. Urea imports almost doubled, while Diammonium Phosphate (DAP) imports also saw substantial increases. Global fertiliser prices reflect this supply pressure, with DAP prices nearly doubling year-on-year and urea prices also rising sharply. Current fertiliser stocks stand at 201 lakh tonnes, with domestic production running at approximately 80,000 tonnes per day. Output since the onset of the West Asia crisis stands at 86.2 lakh tonnes — slightly below the 93 lakh tonnes recorded in the year-ago period.
Despite cost pressures, fertiliser availability for the 2026 kharif season remains 'comfortable', with stocks exceeding 51% of the total requirement of 390 lakh tonnes, as reported by The Times of India. Current fertiliser stocks stand at 201 lakh tonnes, with domestic production running at approximately 80,000 tonnes per day. Output since the onset of the West Asia crisis stands at 86.2 lakh tonnes — slightly below the 93 lakh tonnes recorded in the year-ago period. Sharma noted there is a small shortfall which the country hopes to cover in coming months, with sufficient gas supply available for urea plants. The Department of Fertilisers is reviewing availability of other inputs for urea and complex fertiliser manufacture.
India has been actively diversifying import routes away from the Strait of Hormuz, with over 22 lakh tonnes of fertilisers already landed on Indian shores, according to The Times of India. Through a consortium-based procurement approach, the country has secured approximately 13.5 lakh tonnes of di-ammonium phosphate and 7 lakh tonnes of NPK complex, besides ammonium sulphate, phosphate, and other raw materials. Sufficient gas supply is available for urea plants, with the Department of Fertilisers reviewing availability of other inputs for urea and complex fertiliser manufacture. Subsidy payments are being cleared on a weekly basis through the Integrated Fertilizer Management System, with Sharma noting that 'overall, the situation remains strong, stable and comfortable'.
