While the subsidy on urea has risen 1 per cent to over ₹1.24 lakh crore in FY25 (₹1.23 lakh crore in FY24), the subsidy on phosphatic and potash fertilizers dipped 19 per cent to reach ₹52,810 crore (₹65,199.58 crore).
The government’s expenditure on providing fertilizers at cheaper rates to farmers dropped 6 per cent in the last fiscal to ₹1,77,129.5 crore, from ₹1,88,291.62 crore during 2023-24. The fall is mainly due to a reported decline in the import of urea and di-ammonium phosphate (DAP) coupled with lower international prices.
Despite the drop, the actual subsidy was 3.4 per cent higher than the ₹1,71,310 crore provided in the Budget (Revised Estimate). The government has estimated the fertilizer subsidy to be about ₹1.68 lakh crore for FY25-26, with ₹1.19 lakh crore allocated for urea and ₹49,000 crore for phosphatic and potash.
