Fertiliser subsidy bill may go up

SOURCES SAID IF RUPEE DEPRECIATES BY A MINIMUM OF ₹3 AGAINST THE DOLLAR, THEN DOMESTIC PRODUCTION COST OF UREA COULD GO UP BY AT LEAST ₹700 PER TONNE

- SANJEEB MUKHERJEE

India’s fertiliser subsidy could rise further as the sharp depreciation of the rupee in recent days increases the landing cost of imports and domestic production expenses, particularly of urea and DAP whose retail prices are fixed, experts and industry players have said.

Since the prices are capped, companies cannot pass this additional burden to farmers, and this can only be covered by a higher subsidy, they said.

Between April to October 2025, India has imported almost 137 per cent more urea as compared to the corresponding period last year, while DAP imports during the same period were almost 69 per cent more than April-October 2024, industry data showed. NP/NPKS imports too have risen by almost 81 per cent in this period.