India’s fertiliser subsidy may exceed ₹3 lakh crore in the current fiscal

India's fertilizer subsidy spending could soar above ₹3 lakh crore during the current fiscal year, a senior official has warned. This surge is attributed to the sharp rise in global fertilizer prices. On October 1, the country's opening stocks of fertilizers reached a three-year high, prompting the Center to urge states to curb excessive fertilizer application.

Fertilizer Secretary Rajat Kumar Mishra revealed that the per bag subsidy for urea has jumped by 106 per cent, from ₹1,350 to ₹2,775, while for DAP (50 Kg), it has increased by 61 per cent, from ₹2,102 to ₹3,523. Mishra projected the total fertilizer subsidy for this fiscal year to be around ₹3 lakh crore, with potential further escalation depending on global prices.

The government claims it successfully managed kharif season demand and is optimistic about meeting rabi season requirements. As of September 27, India holds a stock of 145.46 lakh tonnes of urea, DAP, MOP, and Complex, which, when combined with imported fertilizers, is expected to rise to 206.35 lakh tonnes by October 1. Mishra highlighted the global scarcity of key inputs like sulfur and phosphoric acid, which are crucial for phosphatic fertilizers like DAP and complex.

The war in Iran disrupted sulfur production, leading to a price hike in phosphoric acid and increased costs for imported DAP. Urea production, dependent on imported LNG, has also been hit by reduced global gas supply, resulting in a 60-65 per cent decrease in India's gas availability post-war. Union Agriculture Minister Shivraj Singh Chouhan echoed the Fertilizer Ministry's concerns, urging states to prevent misuse of subsidized fertilizers and promote organic/natural farming practices.