The fertiliser ministry has sought to double the fertiliser subsidy for the current 2026-27 fiscal (FY27) from Rs 1.71 lakh crore estimated in the budget, amid a sharp rise in global fertiliser prices triggered by the West Asia crisis. The Department of Fertilizers has approached the Finance Ministry seeking a 100 per cent increase in fertiliser subsidy in order to combat West Asia-driven price surge.
The closure of the Strait of Hormuz will have an impact on the total import bill for fertilisers and also make the global procurement process more challenging. International fertiliser prices are rising while the total available fertiliser pool in the international market is also narrowing.
However, there could be some softening as domestic production of fertilisers is being ramped up. The government provide huge subsidies on urea and P&K (phosphatic & potassic) fertilisers. At present, the MRP of neem-coated urea is Rs 242 per bag (45 kg), and the DAP (di-ammonium phosphate) is being sold at Rs 1,350 per bag (50 kg).
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