Fertiliser Subsidy

Fertiliser subsidies in FY26 topped RE even before West Asia war

India's fertiliser subsidy breached FY26 estimates before the West Asia crisis, with rising imports and consumption set to push the bill higher

Centre hikes non-urea fertiliser subsidy 10-21% amid West Asia crisis

Government raises non-urea fertiliser subsidy by up to 21 per cent for kharif 2026 to shield farmers from rising global prices and supply disruptions linked to West Asia tensions

Subsidies or science? India's farm future hinges on scaling up R&D

Economist Ashok Gulati of the Indian Council for Research on International Economic Relations (Icrier) said government spending on agriculture R&D is "not even peanuts" by global standards

Use West Asia crisis to push fertiliser reforms in India: ICRIER paper

With over 68.6% of India's fertiliser value chain dependent on imports, geopolitical tensions pose rising risks to supply security, underscoring the need for urgent sector reforms, ICRIER paper said

Iran war: Fiscal pressures on govt may mount next FY, say experts

A prolonged West Asia conflict could strain India's fiscal position through higher fertiliser subsidies, rising import costs and weaker revenue growth

Agriculture Minister renews push for DBT of fertiliser subsidy to farmers

Shivraj Singh Chouhan says it would give them the freedom to choose which fertilisers to buy and in what quantities

Agri Minister Shivraj Chouhan pitches for DBT of fertiliser subsidy

Union Agriculture Minister Shivraj Singh Chouhan on Wednesday pitched for transferring the central government's Rs 1.7 lakh crore annual fertiliser subsidy to farmers' bank accounts through Direct Benefit Transfer (DBT), saying it would give them the freedom to choose which fertilisers to buy and in what quantities. Addressing the Pusa Krishi Vigyan Mela at the Indian Agricultural Research Institute (IARI) campus here, Chouhan said a bag of urea that actually costs Rs 2,400 reaches farmers at just Rs 265-270 because of the subsidy the central government absorbs. "If such a large subsidy is transferred directly to farmers' accounts through DBT, farmers will be able to decide which fertilisers to purchase and in what quantities. This system will ensure that the actual beneficiary of the subsidy is the farmer who applies the fertiliser to the fields," he said. Currently, fertiliser subsidies in India are primarily transferred to companies rather than directly to farmers. Though the ...

Time has come for national debate on DBT in fertilisers, says Chouhan

Union Agriculture Minister Shivraj Singh Chouhan calls for a national debate on direct benefit transfer in fertilisers to curb diversion and ensure subsidies reach farmers

Budget 2026: Food subsidy seen rising 12% in FY26 on higher procurement

VB G RAM G gets Rs 95,692 crore in Fy-27; MGNREGA Rs 30,000 to clear pending dues and smoothen transition

Govt conducting pilots with Agristack to link land, fertiliser use, crops

Agriculture Secretary Rajat Kumar Mishra said that in Haryana, an experiment was conducted to connect land, fertiliser usage and crops grown using Agristack, and it showed remarkable results

Best of BS Opinion: India must find its way as it enters a new world order

From India's role in a changing global order to fertiliser reform, export ambitions and the EV supply chain, today's Best of BS Opinion brings together key editorials and columns.

Digital intervention: Fiscal efficiency can work together with soil revival

Linking urea sales to digital farmer IDs could curb leakages and fiscal waste-but only a phased, inclusive rollout can protect farmers and revive soil health

Centre likely to use digital farmer IDs to rationalise urea sales

Move could be another attempt to rein in burgeoning fertiliser subsidy

Budget 2026-27: Fertiliser industry seeks duty cuts, subsidy reforms

The Fertiliser Association of India has suggested rationalisation of customs duties on key raw materials, incentives for downstream projects, and bringing urea under the nutrient-based subsidy framework in Union Budget 2026-27. The FAI has demanded exemption or reduction of basic customs duty on inputs such as ammonia, phosphoric acid, sulphuric acid, rock phosphate and sulphur. It has also sought relief from Agriculture Infrastructure and Development Cess, and resolution of issues arising from inverted GST duty structures leading to accumulation of unutilised input tax credit. On the direct tax front, the industry has recommended restoration of weighted deductions for R&D and farmer education, incentives for downstream fertiliser projects, accelerated depreciation for energy-efficient equipment, and easing of compliance and litigation burdens. The FAI has emphasised the need to promote balanced fertilisation to protect soil health, noting that disparities between urea and P&K

Right time for mkt-linked DAP rates with minimal farmer impact: FAI chief

FAI chief S Sankarasubramanian says buying fertiliser assets abroad could keep value capture outside India; FY27 subsidy requirement may be lower as global prices are softening

Cutting fertiliser subsidy not viable despite green push, says Tharoor

Expressing concern over fertiliser overuse, Congress MP Shashi Tharoor on Wednesday said that reducing fertiliser subsidies remains "politically unviable" while highlighting how Green Revolution architect Prof M S Swaminathan prioritised natural resource protection. Speaking at the launch of Priyambada Jayakumar's book on Swaminathan, Tharoor emphasised the late agricultural scientist's holistic vision. "His whole concept of economic growth was that it wouldn't simply trickle down but rise up from the soil. The Green Revolution wasn't just about higher-yielding wheat varieties but generating employment, enhancing livelihoods, and empowering the rural poor," he said. Drawing from his parliamentary experience, Tharoor noted the political challenges. "I briefly chaired the committee on chemicals and fertilisers. It was packed with people simply not prepared to contemplate any subsidy reduction... Politically, it won't be viable," he observed. However, DMK leader Kanimozhi Karunanidhi

Budget 2025: Food, fertiliser, direct, indirect, interest subsidies decoded

All you need to know about government subsidies and what to expect in the upcoming Union Budget 2025, scheduled to be tabled on February 1 by Finance Minister Nirmala Sitharaman

Govt's 1st decision in 2025 for farmers: PM Modi on crop insurance schemes

Prime Minister Narendra Modi said on Wednesday that the government's first decision in the New Year is dedicated to farmers, as the Union Cabinet headed by him enhanced allocation to crop insurance scheme and raised subsidy to a key fertiliser. He said on X, "(Govt's) first decision of the New Near is dedicated to crores of farmer brothers and sisters of our country. We have approved increasing the allocation for crop insurance scheme. This will provide more security to farmers' crops and will also mitigate their concerns about any damage." The Cabinet's decision on extending the one-time special package on Di-Ammonium Phosphate (DAP) will help farmers by ensuring the fertiliser at affordable prices, he added. The Cabinet approved continuation of the 'Pradhan Mantri Fasal Bima Yojana' and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of Rs 69,515.71 crore for 2021-22 to 2025-26. The decision will help in risk coverage of crops from ...

The DAP gap: Is the ongoing shortage real, and can it be mitigated?

As supplies of DAP have got squeezed, more and more growers are opting for complexes - mainly combinations of nitrogen, phosphorus, potash, and sulphur (NPKS) in various grades

Govt provided Rs 37,000 cr fertiliser subsidy till July 22: Minister Patel

The government has provided nearly Rs 37,000 crore fertiliser subsidy so far this fiscal to ensure adequate supply of crop nutrients to farmers at affordable prices, Parliament was informed on Friday. In a written reply to the Lok Sabha, Minister of State for Chemicals and Fertilizers Anupriya Patel said, "The government provides subsidy to ensure adequate availability of fertilisers at affordable prices to the farmers. Under 'DBT in Fertilizers' system, 100 per cent subsidy on various fertiliser grades is released to the fertiliser companies, on actual sales to the beneficiaries based on Aadhar authentication through POS (point-of-sale) devices installed at each retail shop." She provided details of fertiliser subsidy provided by the government since the 2010-11 fiscal. According to the data, the total fertiliser subsidy stood at Rs 36,993.39 crore till July 22 of the 2024-25 fiscal. In the previous financial year, the subsidy has gone down to Rs 1,95,420.51 crore from Rs 2,54,798