New Delhi, May 18: The ongoing crisis in West Asia has led to a significant increase in fertilizer subsidy costs for the Indian government. Reports indicate that the subsidy expenditure could rise to approximately ₹15,000 crore during the April-June quarter of the current financial year.
Aparna S. Sharma, Additional Secretary of the Fertilizers Department in the Ministry of Chemicals and Fertilizers, confirmed the rise in subsidy costs but did not specify the percentage increase. She stated, “The subsidy bill will definitely 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 stock is available, with the remainder being met through imports from various countries.
As of now, the total stock of fertilizers in the country stands at 2.009 million tons. Sharma emphasized, “Overall, the situation remains strong, stable, and comfortable.”
Domestic production is ongoing at a rate of approximately 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 noted that there is sufficient gas supply for urea plants. India has increased fertilizer imports from regions outside the Hormuz Strait, with around 2.2 million tons imported so far.
The Fertilizers Department is also reviewing the availability of essential raw materials for the production of urea and complex fertilizers. Subsidy payments are being processed 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 536,000 metric tons of ammonia and 594,000 metric tons of sulfur are underway.
The government has confirmed that approximately 700,000 metric tons of NPK fertilizers purchased from outside the Hormuz Strait are expected to arrive at Indian ports in May and June.
In a significant relief for farmers, the government announced that there will be no changes to the maximum retail price (MRP) of key fertilizers. The Fertilizers Department is regularly reviewing the availability of raw materials essential for the production of urea and phosphate and potash-based fertilizers, ensuring that subsidy payments continue to facilitate a smooth supply chain.
A senior official from the Fertilizers Department stated on Monday that despite the West Asia crisis, India’s fertilizer security remains robust and stable. The government has ensured that both domestic production and imports exceed farmers’ needs.
Currently, the country has a sufficient stock of 19.965 million metric tons, covering more than 51% of seasonal demand, significantly higher than the normal buffer level of 33%.
Sharma mentioned 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 disruption.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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