Fertilizer Subsidy Bill May Exceed Budget by 15%

31-Oct-2025 04:16 PM

New Delhi. The fertilizer subsidy bill is expected to rise to ₹1.92 lakh crore during the current financial year, approximately 15 percent higher than the government's budget estimate.

It is believed that the increase in subsidies will be due to a decrease in domestic fertilizer production and higher prices of urea and DAP fertilizers in the international market.

According to senior officials in the Union Finance Ministry, the fertilizer subsidy bill is likely to remain around last year's level as India's dependence on fertilizer imports remains high and the prices of various fertilizers in the international market have also increased significantly. Interestingly,

the domestic industry has projected the fertilizer subsidy bill to reach a peak of ₹2.50 lakh crore during the current financial year 2025-26, a figure that is still much lower than the government's estimate.

During the April-September 2025 financial year, India's fertilizer imports increased significantly during the sowing and growing season of Kharif crops. Now, Rabi crops have begun sowing in October, and this will also require significant quantities of fertilizers.

According to officials, the government will ensure that farmers have adequate stocks of chemical fertilizers and are not affected by the increase in international market prices.

The government is closely monitoring the diversion of subsidized fertilizers to other industries, which led to some fertilizer shortages last season. Such a situation will not arise this time.

The revised estimate of the fertilizer subsidy bill includes ₹1.17 lakh crore for urea and ₹75,000 crore for non-urea fertilizers. India imports fertilizers from several countries.