The government's fertiliser subsidy bill for 2026-27 may surge by Rs 70,000 crore to Rs 2.41 lakh crore, driven by rising import costs of urea and other fertilisers amid the ongoing West Asia crisis, a senior official said on Monday.
Aparna S Sharma, Additional Secretary, Department of Fertilisers, on the sidelines of inter-ministerial briefing on West Asia developments, said, "The subsidy bill will go up, but what percentage is something I cannot say." On whether the increase could be as much as Rs 70,000 crore, she said, "may be." The budgetary allocation for fertiliser subsidies in 2026-27 stands at Rs 1.71 lakh crore.
Despite the cost pressures, Sharma said fertiliser availability for the 2026 kharif season remains "comfortable", with stocks exceeding 51 per cent of the total requirement of 390 lakh tonne, the gap being bridged through diversified import sourcing.
1 May 2026
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Current fertiliser stocks stand at 200.9 lakh tonne, she said.
Domestic production is running at approximately 80,000 tonne per day, with output since the onset of the West Asia crisis at 86.2 lakh tonne -- slightly below the 93 lakh tonne recorded in the year-ago period.
"There is a small shortfall which we hope to cover in the coming months," Sharma noted. Sufficient gas supply is available for urea plants, she added.
India has been actively diversifying import routes away from the Strait of Hormuz, with over 22 lakh tonne of fertilisers already landed on Indian shores.
Through a consortium-based procurement approach, the country has secured approximately 13.5 lakh tonne of Di-Ammonium Phosphate and 7 lakh tonne of NPK complex, besides ammonium sulphate, phosphate, and other raw materials.
The Department of Fertilisers is also reviewing availability of other inputs for urea and complex fertiliser manufacture. Subsidy payments are being cleared on a weekly basis through the Integrated Fertilizer Management System.
"Overall, the situation remains strong, stable and comfortable," Sharma said.
