India Closely Monitoring Fertiliser Supply Amid Geopolitical Tensions

India’s fertiliser subsidy expenditure could cross ₹3 lakh crore during the current financial year if supply disruptions arising from the ongoing West Asia crisis persist, a senior government official said.

The budgetary allocation for fertiliser subsidies for FY2026-27 currently stands at ₹1.71 lakh crore. However, officials indicated that the subsidy requirement may rise sharply due to increasing international prices of urea, Di-Ammonium Phosphate (DAP) and other soil nutrients.

Speaking at a conference organised by the Indian Council for Research on International Economic Relations (ICRIER), Krishna Kant Pathak, Joint Secretary in the Department of Fertilizers, said the government presently has sufficient fertiliser availability with stocks estimated at nearly 20 million tonnes.

The remarks come amid global concerns over supply chain disruptions, higher energy costs and geopolitical instability affecting fertiliser production and exports internationally. Fertiliser prices are closely linked to global natural gas and energy markets, which have experienced volatility due to tensions in the region.

India provides substantial fertiliser subsidies to shield farmers from sharp price increases and to ensure stable agricultural production. Any significant rise in subsidy expenditure could have implications for fiscal management and government spending priorities.

Officials said the government continues to monitor global markets closely while maintaining adequate domestic stock levels to ensure uninterrupted availability for farmers during the agricultural season.