The Government has estimated that the fertilizer subsidy is approximately ₹ 1.68 Lakh Crore-Eurea ₹ 1.19 Lakh Crore and phosphatic and potassa ₹ 49,000 million rupees in fiscal year 2015-26 | Photo credit: Veankanni Raj B
Government’s expenditure to provide fertilizers to cheaper rates to farmers fell 6 percent in the last prosecutor to ₹ 1.77,129.5 million rupees, from ₹ 1.88,291.62 million rupees for 2023-24. The fall is mainly due to a decrease in the importation of urea and di-ammonium phosphate (DAP) together with lower international prices.
Despite the fall, the real subsidy was 3.4 percent higher than the ₹ 1,71,310 million rupees in the budget (revised estimate). The Government has estimated that the fertilizer subsidy is approximately ₹ 1.68 Lakh Crore for fiscal year 2015-26, with ₹ 1.19 Lakh Crore assigned for Urea and ₹ 49,000 million rupees for phosphatic and potassa.
According to the latest official data on the real subsidies incurred on the basis of registered sales, the Urea subsidy has increased by 1 percent in the 2015 fiscal year to more than ₹ 1.24 Lakh million rupees of ₹ 1.23 Lakh cro of rupees of ₹ 65,199.58 million rupees.
‘Conscious decision’
“It is a conscious decision to demolish the subsidy since the fertilizer is the following area after oil, where there is room to demolish the fiscal expense gradually,” said a former secretary of agriculture, adding that in the hard, the food, the food, the food, the night, the food government and the afternoon they have to insist on their increase after a few years.
He pointed out that when the potassa subsidy was drastically cut from ₹ 20/kg to approximately ₹ 2/kg, after a few seasons, farmers subject to the new retail price or ₹ 1,500 ₹ 1,700/per bag (or 50 kg), while Saphing Daph.
The Ministry of Fertilizers has been considering launching a pilot in selected districts on direct subsidy transfer, for which it has developed a module, the sources said. However, the details of the plans have not yet been discussed with the industry, while officials have tight lips.
The Ministry of Agriculture has already shared the data of different schemes, such as PM-Kisan, PM Fasal Bima Yojana, Soil Health Card and also the last unique identification for each farmer who mentions its details as Lzer.
DBT for fertilizers
Currently, the transfer of direct benefits (DBT) or the fertilizer subsidy in implemented throughout the country, after its launch in 2018, in which 100 percent payment of subsidy is made to fertilizer manufacturing companies in basic sales.
The sale price of the Urea, a fully controlled fertilizer, has continued in ₹ 267/by (45 kg) of the stock market since it adapts to many years, and the industry estimates show that it could be around ₹ 1,750/bag without subsidy. Similarly, DAP’s retail price has been set at ₹ 1,350/bag, which would shoot until around ₹ 3,500/bag without subsidy.
Posted on April 21, 2025