Government has expended fifty-six percent of its annual fertiliser subsidy.NEW DELHI: The elevated global prices of finished products and LNG, the major feedstock for domestic urea production, have led to the govt using up around 56% of the annual fertiliser subsidy in the first four-and-a-half months of the current financial year.The higher spending (Rs 99,000 crore) is being seen as an indication that overall expenditure on fertiliser subsidy is set to breach the estimate of Rs 1.77 lakh crore in FY2027. A large chunk of the subsidy (Rs 77,871 crore) has been spent on imports and domestic production of urea, while Rs 21,255 crore has been utilised for imports as well as domestic production of di-ammonium phosphate (DAP), Muriate of Potash (MoP) and NPKs.Officials said that while govt was staring at a steep hike in subsidy when the US-Iran-Israel conflict was at its peak, there are enough signals now of no such major crisis since global prices of urea have fallen sharply from their peak in April. With easing global supplies and diversified imports, the landed cost of urea has declined by around 60% to $390 per tonne currently from a peak of close to $1,000 per tonne in April.India imports about 70% of its domestic requirement of fertiliser and its raw materials. The annual consumption of different variants of fertiliser in FY26 was over 700 lakh tonnes.
56% of annual fertiliser subsidy used up in first 4.5 months of fiscal
NEW DELHI: The elevated global prices of finished products and LNG, the major feedstock for domestic urea production, have led to the govt using up around 56% of the annual fertiliser subsidy in the first four-and-a-half months of the current financial year.
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