Why India's fertilizer subsidy bill jumped to ₹2.17L/cr in FY26
Business
India just spent ₹2.17 lakh crore on fertilizer subsidies in FY26, way more than planned.
Why? Ongoing conflict in West Asia has made global prices shoot up, and the government stepped in to keep fertilizers affordable for farmers.
India imports spike, subsidies under pressure
Importing fertilizers got a lot pricier: urea imports jumped 83% and DAP imports rose 36%, with both costing much more per ton.
Domestic production also dropped because of gas shortages, so India's relying even more on expensive imports.
With supply routes still blocked and demand steady, the FY27 budgeted subsidy is expected to rise by about 20% from the ₹1.7 trillion estimate, putting extra pressure on public finances.