Centre uses 40% of annual fertiliser subsidy in first 3.5 months

NEW DELHI: Govt has spent Rs 70,709 crore, nearly 40% of the fertiliser subsidy allocated for 2026-27, in the first three-and-a-half months of the current fiscal year, indicating the subsidy bill is set to exceed the budget estimate due to the conflict in West Asia.The fertiliser department provided this information to Rajya Sabha in a written reply to a question. “To reduce dependence on a limited number of countries for fertiliser imports, the department (fertiliser) has taken several measures to diversify import sources by engaging with Indian missions in various countries to identify additional suppliers and strengthen the fertiliser supply chain, with a view to ensuring the timely and adequate availability of fertilisers across the country,” it said while adding that sufficient funds are available to meet the subsidy expenditure.Govt has allocated little less than Rs 1.8 lakh crore fertiliser subsidy for 2026-27. Officials said while actual subsidy spent in FY 2025-26 was around Rs 2.2 lakh crore against revised estimate of approximately Rs 1.9 lakh crore, this year it’s likely to be higher because of elevated global prices levels of soil nutrients.TOI on Tuesday had reported that global urea prices remained elevated at $572 per tonne last month, 45% higher than in June 2025. However, prices were nearly 40% less than that of May this year. “Going by the trend, the subsidy outgo would be higher than the budget estimate even as we are ramping up domestic production of urea,” said an official.Urea continues to be sold at Rs 266.50 per 45 kg bag against global prices exceeding Rs 4,000 a bag. This price has remained unchanged since March 2018. Despite the global price fluctuations, the retail price of DAP is maintained at Rs 1,350 per 50 kg bag for farmers.Get the latest Business News and Live updates. Download the TOI app.