India spends 40 percent of annual fertiliser subsidy in early fiscal months

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The government has spent Rs 70,709 crore, nearly 40% of its Rs 1.8 lakh crore fertiliser subsidy allocation for FY 2026-27, in the first three-and-a-half months of the fiscal year, according to a written reply in Rajya Sabha.
Officials expect the total subsidy bill to exceed the budget estimate because of elevated global fertiliser prices and supply chain pressures linked to the West Asia conflict.
Last year, actual spending of about Rs 2.2 lakh crore also overshot the revised estimate of roughly Rs 1.9 lakh crore.
The government says it is diversifying import sources, ramping up domestic urea production, and maintains fixed retail prices for farmers, such as urea at Rs 266.50 per 45 kg bag.

Whether the subsidy bill surpasses the Rs 1.8 lakh crore budget estimate by fiscal year-end
Movement in global urea prices, which were $572 per tonne last month, down 40% from May but 45% higher than June 2025
Progress in diversifying import sources and increasing domestic urea production

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Named India · West Asia · Fertiliser Department · Government of India · Rajya Sabha · Times of India

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