Centre may spend less on fertiliser subsidy to narrow its budget deficit

The lower fertilizer allocation will help with India's goal of cutting its budget deficit. Food and energy costs have jumped after Russia's invasion of Ukraine

India is likely to spend less on subsidizing fertilizers as global prices fall and the government looks to narrow its budget deficit, according to people familiar with the matter.

Officials are considering slashing the fertilizer subsidy bill to 1 trillion to 1.5 trillion rupees ($18 billion) for the 2023-24 fiscal year starting April, according to the people, who asked not to be identified as they’re not authorized to speak publicly. That would be down from an estimated 2.2 trillion rupees this year, which overshot the initial budget as prices surged.

The lower fertilizer allocation will help with India’s goal