Finance Minister Nirmala Sitharaman recently hinted that the government intended to keep fertiliser prices unchanged despite rising global rates. This will require increasing the subsidy bill, which is poised to overshoot Budget estimates this financial year.
Fertiliser production in India marginally dipped in FY26, with cumulative production of urea, NPK and DAP fertilisers declining from 45.77 million tonnes in FY25 to 45.23 million tonnes in FY26. Urea production fell by 4.37 per cent during this period. (Chart 1)
