Huge increase in government’s fertilizer subsidy bill due to West Asia crisis!
Aparna S., Additional Secretary, Department of Fertilizers, Ministry of Chemicals and Fertilizers. Sharma confirmed the increase in subsidy expenditure, although he did not specify by what percentage it would increase.
She said, “The subsidy bill will definitely increase, but by what percentage it will increase, I cannot say at the moment.”
Despite rising costs, Sharma said the availability of fertilizers for the 2026 kharif season remains ‘satisfactory’. Against the total requirement of 390 lakh tonnes, more than 51 per cent stock is available and the remaining requirement is being met through imports from various countries.
He informed that at present the total stock of fertilizers in the country is 200.9 lakh tonnes. “The overall situation remains strong, stable and comfortable,” Sharma said.
Domestic production in the country is running at the rate of about 80,000 tonnes per day. Since the beginning of the West Asia crisis, 86.2 lakh tonnes of fertilizer has been produced, whereas in the same period last year this figure was 93 lakh tonnes.
He said that adequate gas supply is available for urea plants.
India has increased the import of fertilizers from areas outside the Strait of Hormuz and so far about 22 lakh tonnes of fertilizers have been imported.
The Department of Fertilizers is also reviewing the availability of urea and other raw materials required for the production of complex fertilizers. Subsidy payment is being made every week through Integrated Fertilizer Management System.
To ensure that there is no shortage during peak demand, Indian fertilizer companies have launched joint global tenders for 12 Lakh MT DAP, 4 Lakh MT TSP and 3 Lakh MT Ammonium Sulphate.
Additionally, tenders are also under process for procurement of raw materials including 5.36 lakh metric tonnes of ammonia and 5.94 lakh metric tonnes of sulphur.
The government has also confirmed that around 7 lakh metric tonnes of NPK fertilizer procured from outside the Strait of Hormuz is expected to arrive at Indian ports during May and June.
In a big relief to farmers, the government said there has been no change in the maximum retail prices (MRP) of major fertilizers.
The Department of Fertilizers is regularly reviewing the availability of raw materials required for the production of urea and phosphate and potash based fertilizers and is continuing subsidy payments every week, so that the supply system remains smooth.
A senior official of the Department of Fertilizers said on Monday that India’s fertilizer security remains strong and stable despite the West Asia crisis. The government has ensured availability in excess of farmers’ needs by increasing both domestic production and imports.
He said that at present the country has adequate stock of 199.65 lakh metric tonnes, which covers more than 51 percent of the seasonal demand. This is much higher than the normal buffer level of 33 percent.
Sharma had said in a recent press conference that this is the result of better advance storage and efficient logistics management.
The Empowered Group of Secretaries has held eight meetings so far to address the challenges related to fertilizer availability, so that fertilizers can be made available to farmers at affordable rates without any interruption.
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