The Indian government has floated the country's planned fertilizer budget for the fiscal year 2026-27, lining up urea subsidies of 1.168 trillion rupees ($12.75bn).
The government has pencilled in subsidies of Rs910mn for domestically produced urea and Rs320mn for imports in the year running April-March.
The figure for imports marks a drop from the eventual 2025-26 subsidy of Rs520mn, but is up from the original planned subsidy of Rs210mn. Indian fertilizer subsidies are subject to revision and quite frequently shifted, typically upwards, to account for a shortfall owing to international price movements.
The outlined spend for domestically produced urea is largely in line with the Rs90mn revised figure for 2025-26, bringing the total urea budget to Rs1.265 trillion for the current fiscal year.
India separates subsidies for urea, which is sold at a price fixed considerably below market levels to the farmer, from other fertilizers, such as DAP and MOP, which fall under the nutrient-based subsidy mechanism. The country buys most of its urea imports through tenders held by state-backed firms, with imports ranging from 6mn-10mn t/yr, depending on domestic stocks, demand and output, while domestic production hovers at 30mn-31mn t/yr. End-user demand in India is substantial and growing, with sales hitting nearly 40mn t in the 2025 calendar year.
