Finance Ministry Boosts Fertiliser Subsidy and Buffer Stock Amid Global Crisis

The Finance Ministry has cleared additional fertiliser subsidy support for the April-June quarter after global prices increased following the West Asia crisis, as per PTI news reports. 

Officials said the higher allocation was required as fertiliser costs, especially urea, have risen sharply in international markets ahead of the kharif sowing season. 

According to government estimates, monthly subsidy requirements during the quarter may rise by ₹10,000 crore to ₹15,000 crore compared with the same period last year. Despite the increase in costs, fertiliser prices for farmers have remained unchanged. 

Government Builds Buffer Stock 

The Centre has also increased fertiliser availability to avoid shortages during the sowing season. Data from the Department of Fertilisers showed total stock availability stood at 199.65 lakh tonnes, higher than 178.58 lakh tonnes recorded during the same period a year ago. 

DAP stocks rose to 22.52 lakh tonnes from 14.87 lakh tonnes last year. NPK stocks increased to 60.42 lakh tonnes from 48.32 lakh tonnes, while urea availability stood at 76.65 lakh tonnes. MOP stock was reported at 13.07 lakh tonnes, slightly higher than last year’s level. 

Officials said an additional 7 lakh metric tonnes of NPK fertilisers are expected to arrive at Indian ports during May and June to support supply during the peak sowing period. 

Production and Imports Increase 

Government data showed around 97 lakh metric tonnes of fertilisers were added to domestic availability through local production and imports after the start of the crisis. 

Domestic production accounted for 76.78 lakh metric tonnes, while imports reaching Indian ports contributed 19.94 lakh metric tonnes. Urea production stood at 46.28 lakh metric tonnes, supported by imports of 12.51 lakh metric tonnes. 

NPK production reached 15.57 lakh metric tonnes along with imports of 3.79 lakh metric tonnes. DAP production stood at 6.20 lakh metric tonnes, while imports were reported at 0.76 lakh metric tonnes. 

Budget Allocation 

The Union Budget for 2026-27 allocated ₹1.71 lakh crore towards fertiliser subsidies. Officials said the full-year subsidy requirement remains uncertain as global prices continue to be affected by developments in West Asia. 

Read More: USD/INR: Rupee Hits Record Low of 95.55 Against US Dollar Amid Rising Oil Prices and FII Outflows! 

Conclusion  

The government has increased subsidy support and stock availability ahead of the kharif season amid concerns over global supply disruptions. 

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