India's fertilizer subsidy bill could hit ₹3L/cr in FY27
India's fertilizer subsidy bill could jump past ₹3 lakh crore in FY27, almost doubling what was planned in the budget.
This spike is mostly because global prices for urea and LNG are climbing fast, thanks to ongoing supply issues linked to the West Asia crisis.
If elevated prices and supply disruptions continue into the Rabi season, officials warn the bill may even touch ₹3.5 lakh crore—putting extra pressure on government finances and making things tougher for farmers.
Urea up 65% LNG also costlier
Urea prices have shot up by 65% since February, and Indian imports are pushing them even higher. LNG, crucial for making urea, is also way more expensive now.
With planting season coming up soon, Finance Minister Nirmala Sitharaman says it's urgent to tackle these fuel and fertilizer challenges.
Experts suggest looking for new suppliers so farmers aren't left hanging.