Fertiliser subsidy may breach BE

Nutrient-based outlay for current kharif season may have to be raised

- SANDIP DAS

THE GOVERNMENT'S FERTILISER subsidy bill for FY26 could see a rise from the budget estimates (BE) of ₹1.67 lakh crore, owing to a steep 23% rise in global prices of Di-Ammonia Phosphate (DAP) since the beginning of April.

Sources told FE that in addition to budgetary allocation of ₹37,216 crore towards kharif season for nutrient-based subsidy (NBS) or non-urea outlay, the government will have to provide a special package to fertiliser companies on account of the rise in global DAP prices. The country imports two-thirds of its annual consumption of 10 million tonne (MT) of DAP.

In addition, domestic manufacturing of DAP also depends on key raw materials, 'rock phosphate', mostly imported from Senegal, Jordan, South Africa and Morocco.