The Union Cabinet on Wednesday approved a 64% year-on-year increase in fertilizer subsidies for the ongoing rabi season, setting the budget at ₹62,370 crore. The decision, intended to keep farm input costs affordable despite global price volatility, marks a significant rise from the ₹37,952 crore earmarked for the previous rabi season.
Information and Broadcasting Minister Ashwini Vaishnaw told reporters that the government aims to ensure adequate supplies of essential soil nutrients. According to government data, India held 23.52 million tonnes of fertilizer stocks as of November 10, compared to 17.35 million tonnes at the same time last year. The Ministry stated that while domestic requirements for the season are 35 million tonnes, the current stock levels remain sufficient.
The increased subsidy, which covers phosphatic and potassic (P&K) fertilizers, applies from October 1, 2026, to March 31, 2027. Hindustan Times reported that the funding hike of ₹24,418 crore is a response to disruptions in the international fertilizer market following the US-Israel attacks on Iran in February and subsequent shipping restrictions near the Strait of Hormuz. Livemint noted that this move could strain the government's fiscal year 2027 budget, as only ₹20,336 crore remained from the initial allocation of ₹54,000 crore after September-end expenditures.
The Cabinet also approved a broader package totaling ₹77,101 crore, which includes credit guarantees for micro-enterprises, funding for a new national museum, and an extension of the Noida Metro. Furthermore, the government has implemented a support mechanism for domestic manufacturers of sulphur-based fertilizers, providing 20% of procurement costs, subject to floor prices for sulphur and sulphuric acid.
Key facts
- The total subsidy for rabi 2026-27 is ₹62,370 crore, a 64% increase over the previous season.
- Approved nutrient rates per kg: Nitrogen (₹94.21), Phosphorus (₹66.11), Potash (₹2.38), and Sulphur (₹10.42).
- DAP will be made available to farmers at a controlled price of ₹1,350 per 50-kg bag.
- Current fertilizer stocks total 23.52 million tonnes as of November 10, 2026.
- The broader Cabinet package includes ₹15,000 crore for credit guarantee support to micro-entrepreneurs.
Why it matters
The subsidy is intended to protect Indian farmers from fluctuating global prices for key raw materials like di-ammonium phosphate (DAP) and muriate of potash (MOP). By keeping these inputs affordable, the government aims to maintain steady agricultural output in the upcoming sowing cycle, which focuses on wheat, pulses, and oilseeds.
Source: Livemint, Hindustan Times
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