Cabinet Raises Fertiliser Subsidy Budget by 64% to ₹62,370 Crore for Rabi Season
· Business · Hindustan Times, Deadline, LiveMint
The Union Cabinet approved a ₹62,370 crore subsidy budget for phosphatic and potassic fertilisers for the 2026-27 Rabi season, marking a 64.3% increase over the previous season. The ₹24,418 crore hike comes in response to disruptions in the international fertiliser market following the US-Israel attacks on Iran in February. Shipping restrictions through the Strait of Hormuz severely impacted global trade, exposing India as a major importer that sourced nearly two-thirds of its nitrogenous fertiliser from the Gulf region in 2024. International urea prices surged past $850 per tonne in April before easing to $453 in June, while Di-ammonium phosphate prices rose from $580 to $770 per tonne. The government provides these subsidies under the Nutrient Based Subsidy scheme, which covers 28 grades of P&K fertilisers to ensure affordable prices for farmers.
Why it matters
Indian farmers will continue to receive essential phosphatic and potassic fertilisers at affordable prices despite severe international supply chain disruptions and surging import costs caused by Middle East conflict.
Read the original report — Hindustan Times
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