India looking at low fertiliser subsidy burden, less urea import in FY24

Urea is the most widely consumed fertiliser in the country, which is followed by DAP

In a move signalling the government’s target to reduce fertiliser subsidy for the current fiscal year (FY24), the Cabinet, via a recent notification, drastically reduced per kilogram subsidy for nitrogen, phosphorus, potassium or sulphur for the April-September period.

The subsidy for January-March 2023 has also been revised. The primary reason for the fall in subsidy is the decline in international prices of all key components, along with softening of global energy prices, since the Russia-Ukraine war.

In April 2022, the cost and freight (CFR) price of finished urea was quoted around $627 per tonne, and by May 2023, the same was at