Weak rupee may raise fertiliser import, production costs and subsidy load

A sliding rupee could make both fertiliser imports and domestic production costlier, pushing the subsidy bill higher as urea and DAP prices remain fixed for farmers

India’s fertiliser subsidy could rise further as the sharp depreciation of the rupee in recent days increases the landing cost of imports and domestic production expenses, particularly of urea and DAP whose retail prices are fixed, experts and industry players have said.

 

Since the prices are capped, companies cannot pass this additional burden to farmers, and this can only be covered by a higher subsidy, they said.

 

Between April to October 2025, India has imported almost 137 per cent more urea as compared to the corresponding period last year, while DAP imports during the same period were almost 69 per