India’s fertiliser subsidy bill could cross ₹3 lakh crore this fiscal year as higher global raw-material prices and geopolitical disruptions increase the government’s cost of keeping fertilisers affordable for farmers.
India’s fertiliser subsidy bill may cross ₹3 lakh crore in the current fiscal year, driven by rising global fertiliser and raw-material prices, according to the report.
The government had allocated ₹1.71 lakh crore for fertiliser subsidy in the Union Budget. However, officials expect the final requirement to rise substantially as international prices remain elevated.
In his presentation at the National Agriculture Conference-Rabi Campaign 2026, Agriculture Minister Shivraj Singh Chouhan said global prices have increased sharply. The price of urea rose from $350 per tonne in February 2026 to $1,050 per tonne, while DAP increased from $450 per tonne to $775 per tonne.
The price of NPK fertilisers increased from $500 per tonne to $523 per tonne, while sulphur prices rose from $210 to $290 per tonne.
The report said imported DAP cost in India reached $940 per tonne, up from $680 per tonne earlier. India also imports around 90% of its crude requirement, while Russia currently accounts for roughly 35% of imports.
During April-July, Russian supplies of crude oil were around 44% of imports, valued at $28.32 billion, 75% higher than $16.18 billion a year earlier.
Russian crude arrivals, however, eased to around 1.75 million barrels per day in April, the lowest since April 2025, compared with around 2.1 million barrels per day in August.
The government expects adequate fertiliser availability for the rabi season. As of September 27, stocks of urea, DAP, MOP and complex fertilisers stood at 45.46 lakh tonnes, while the rabi season begins from October 1.
The report said India’s gas supply under long-term contracts was around 18% lower compared with pre-war levels, while gas prices increased from about $6 per MMBtu before the war to $28–29 per MMBtu afterward, adding to fertiliser production costs.
The Agriculture Ministry has asked states to check diversion of highly subsidised fertilisers for industrial use and ensure farmers receive balanced supplies based on soil conditions.
