India’s fertiliser subsidy outlay for the 2026-27 fiscal year is expected to rise as import costs increase amid the ongoing West Asia crisis, according to senior officials cited by multiple outlets. A senior official in the Department of Fertilisers says the subsidy bill could increase by as much as ₹70,000 crore, though the exact magnitude is not final and the precise percentage increase is not stated. The government’s current budgetary allocation for fertiliser subsidies in 2026-27 is ₹1.71 lakh crore. One report also frames the potential ceiling as bringing the subsidy bill to around ₹2.41 lakh crore if the increase materialises.
Despite the cost pressures, officials say fertiliser availability for the 2026 kharif season remains “comfortable.” Reported figures include stocks of about 200.9 lakh tonnes, exceeding 51% of total requirement of about 390 lakh tonnes, with the remaining gap bridged through diversified import sourcing. Officials also indicate domestic production continues alongside imports, helping manage supply. The forecasts link the expected rise mainly to higher urea and other fertiliser import costs.
