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

Centre spent Rs 70,709 crore, nearly 40% of the Rs 1.8 lakh crore fertiliser subsidy allocated for 2026-27, in the first 3.5 months of the fiscal year.

The subsidy bill is expected to exceed the budget estimate due to elevated global prices of soil nutrients and the West Asia conflict.

The fertiliser department informed Rajya Sabha that it is diversifying import sources via Indian missions to ensure timely and adequate fertiliser availability.

Global urea prices were $572 per tonne in June 2026, 45% higher than June 2025, though nearly 40% lower than May 2026.

Urea is sold to farmers at Rs 266.50 per 45 kg bag, unchanged since March 2018, against global prices exceeding Rs 4,000 a bag; DAP is maintained at Rs 1,350 per 50 kg bag.