India's fertilizer subsidy to rise 20% amid West Asia conflict
India's fertilizer subsidy is expected to jump by 20% this year, thanks to a surge in global prices caused by the ongoing conflict in West Asia.
India just placed a record order for urea, about one-quarter of its yearly imports, even though prices have nearly doubled since late February.
The move comes as supply disruptions from the conflict in West Asia continue to hit global markets.
India fertilizer subsidies ₹1.87 trillion FY2026
With India relying so much on West Asia for fertilizers like urea and DAP (especially during the rice and cotton planting season), these price hikes hit hard.
In the financial year ended March 2026, subsidies cost the government around ₹1.87 trillion ($19.85 billion), but that number is set to climb even higher as global supplies tighten and import bills grow.