West Asia conflict may push fertiliser subsidy past Rs 2 lakh crore

New Delhi: West Asia conflict disrupting supply of finished fertilisers and raw materials is set to push subsidy for soil nutrients beyond Rs 2 lakh crore, 20% more than the Budget Estimate of 2026-27, according to a govt assessment at "current level".

Govt has prioritised enough supply and will keep updating the finance ministry about additional expenditure, an official said.

This is second time in past four years when prices of fertilisers are soaring across the globe.

Responding to a question at an inter-ministerial briefing on developments in West Asia, Aparna S Sharma, additional secretary in fertilisers department, said price of urea discovered through global tenders has almost doubled compared to pre-crisis levels. The cost of natural gas, which is essential for domestic urea production, has also almost doubled.

She said that despite the spike, prices of urea and diammonium phosphate (DAP) remain unchanged at Rs 266.5 per 45 kg bag and Rs 1,350 per 50 kg bag, respectively. There is more than adequate stock of fertilisers for kharif crops, govt said.

Govt also plans to import 64 lakh tonnes of urea and 19 lakh tonnes of other fertilisers this kharif season. Of the planned imports, 9.4 lakh tonnes of urea has been received since the crisis began.

Another 13.1 lakh tonnes were secured through a global tender in Feb while 25 lakh tonnes more have been tendered and are expected to arrive from May.

"Most of the imports are out of the Strait of Hormuz. We are very much sure that we will be getting the supplies on time," Sharma said. She also said domestic production has also increased with urea plants getting 97% of their gas requirement.

Post-crisis domestic urea production has reached 35.4 lakh tonnes. Govt has also floated a global tender for the import of 12 lakh tonnes of DAP, 4 lakh tonnes of triple superphosphate (TSP), and 3 lakh tonnes of ammonium sulphate to ensure adequate supplies during the peak kharif season.


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