New Delhi, May 18: The ongoing crisis in West Asia has led to a significant rise in the government’s fertilizer subsidy bill, which is expected to increase by approximately ₹15,000 crore during the April-June quarter of the current financial year, according to sources.
Aparna S. Sharma, Additional Secretary of the Fertilizer Department in the Ministry of Chemicals and Fertilizers, confirmed the rise in subsidy expenditure but did not specify the percentage increase. She stated, “The subsidy bill will certainly increase, but I cannot say how much at this moment.”
Despite the rising costs, Sharma assured that the availability of fertilizers for the 2026 Kharif season remains “satisfactory.” Currently, over 51% of the required 39 million tons of fertilizers is in stock, with the remainder being met through imports from various countries.
As of now, the total stock of fertilizers in the country stands at 20.09 million tons. Sharma emphasized, “Overall, the situation remains strong, stable, and comfortable.” Domestic production is running at a rate of about 80,000 tons per day. Since the onset of the West Asia crisis, 8.62 million tons of fertilizers have been produced, compared to 9.3 million tons during the same period last year.
She also mentioned that there is sufficient gas supply for urea plants. India has increased fertilizer imports from areas outside the Strait of Hormuz, with approximately 2.2 million tons imported so far.
The Fertilizer Department is reviewing the availability of essential raw materials for the production of urea and complex fertilizers. Subsidy payments are being made weekly through the Integrated Fertilizer Management System.
To ensure there are no shortages during peak demand, Indian fertilizer companies have initiated global tenders for 1.2 million metric tons of DAP, 400,000 metric tons of TSP, and 300,000 metric tons of ammonium sulfate. Additionally, tenders for the procurement of raw materials, including 536,000 metric tons of ammonia and 594,000 metric tons of sulfur, are also underway.
The government has confirmed that nearly 700,000 metric tons of NPK fertilizers purchased from outside the Strait of Hormuz are expected to arrive at Indian ports during May and June.
In a significant relief for farmers, the government has stated that there will be no change in the maximum retail price (MRP) of key fertilizers. The Fertilizer Department continues to regularly review the availability of raw materials necessary for the production of urea and phosphate and potash-based fertilizers, ensuring a smooth supply chain.
A senior official from the Fertilizer Department stated on Monday that despite the West Asia crisis, India’s fertilizer security remains robust and stable. The government has ensured greater availability by increasing both domestic production and imports to meet farmers’ needs.
Currently, the country has a sufficient stock of 19.965 million metric tons, covering over 51% of seasonal demand, which is significantly higher than the normal buffer level of 33%. Sharma noted in a recent press conference that this is a result of better advance stocking and efficient logistics management.
To address challenges related to fertilizer availability, a group of empowered secretaries has held eight meetings to ensure that farmers receive fertilizers at affordable rates without any interruptions.