New Delhi: India’s fertilizer subsidy bill is likely to increase 20% in the current financial year as the blockade of the Strait of Hormuz chokes West Asian supplies and drives up global nutrient prices, a senior government official said on Monday.
India’s fertilizer subsidy stood at an upwardly revised ₹1.86 trillion in the 2025-26 fiscal year (FY26), and was estimated at ₹1.71 trillion in the budget for the ongoing financial year. Mint reported on 2 March that India’s fertilizer subsidy will go up amid the West Asian conflict.
Aparna Sharma, joint secretary in the department of fertilizers, said the department is in constant touch with the department of expenditure amid elevated global fertilizer prices, and will apprise it of any need to increase subsidies.
“The prices have almost doubled but there is no change in MRP (maximum retail price) of fertilizers. So, that is a fact… we have been communicating with our department of expenditure about the finances and we have been told that we can keep them informed and there is no issue on that,” Sharma said.
To a question on whether fertilizer subsidies are likely to increase, she said: “Of course there are going to be additionalities.”
She stressed that the increase in global prices would not impact the farmers and the maximum retail price of the commodity in Indian market would remain intact. Currently, the government transfers fertilizer subsidies to companies rather than directly to farmers. Fertilizer subsidies play a crucial role in keeping farming viable and food prices stable as subsidies reduce the price farmers pay for key nutrients like urea, di-ammonium phosphate (DAP), and potash, making cultivation more affordable.
Sharma said that Indian fertilizer companies issued an aggregated global tender for procurement of 1.2 million tonnes DAP, 400,000 tonnes TSP (triple super phosphate) and 300,000 tonnes ammonium sulphate on 24 April. These will help to ensure adequate availability during the peak farming season.
“The price of urea that we have discovered through the global tender has almost doubled and the price of other fertilizer has also increased,” she added.
The development assumes significance as India is the world’s second-largest consumer of fertilizers, with demand continuing to grow steadily. It is also the largest global importer of diammonium phosphate and urea. Despite being the world’s second-largest agricultural producer, the country relies on imports to meet about 60% of its DAP requirements and around 15% of its urea and NPK (Nitrogen, Phosphorus, and Potassium) fertilizer demand.
Beyond finished fertilizers, India depends on imports for key raw materials and intermediates such as rock phosphate, phosphoric acid, and potash due to limited domestic availability. Although the country has a substantial domestic production base, demand has consistently outstripped supply, leading to a high dependence on imports.
West Asia meets about 30% of India’s urea needs, 30% of di-ammonium phosphate demand and 50% of LNG (liquefied natural gas) requirement, which is used for production of fertilizers.
On the availability of fertilizers, she said that country currently has 19.02 million tonnes of fertilizers, 49% of the required 39.05 million tonnes required for the upcoming kharif season.
Earlier, on 8 April, the Union Cabinet approved nutrient-based subsidy (NBS) rates of about ₹41,533.81 crore for phosphatic and potassic (P&K) fertilizers for the upcoming kharif season.
Amid reports of closure of about 421 petrol pumps in Andhra Pradesh, due to panic buying and resultant fuel shortage, Sujata Sharma, joint secretary, ministry of petroleum and natural gas, said that the government is monitoring the situation and the country has adequate transport fuels.
“We are monitoring the situation and I am sure by today evening all the stocks will be available at all the retail outlets. We have sufficient stock and sometimes because of panic buying there will be issue, but that issue is also taken on priority and is resolved and we don’t foresee any situation where we have to go for an import of petrol and diesel,” she said.
Further, to a question on the end of the US sanctions waiver on the Chahbahar port in Iran in which India has made investments, the spokesperson of the ministry of external affairs (MEA) said that India is in talks with the US and Iran on the issue.
“The issue is under discussion with both US and Iran,” said MEA spokesperson Randhir Jaiswal.
Meanwhile, the ministry of shipping, ports and waterways said an incident was reported on 25 April involving the Togo-flagged oil/chemical tanker MT CHIRON 7, which had 17 Indian seafarers among its 24-member crew. It said that all Indian seafarers are safe. The vessel was near the outer port limits of Shinas, Oman, when it came close to ships intercepted by the Iranian Coast Guard, during which warning shots were fired, the ministry added.
