The Union Budget 2026-27 has reiterated the government’s commitment to ensuring the timely availability of fertilisers to farmers at affordable prices, while supporting domestic production and promoting balanced and sustainable nutrient use.
Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman announced an estimated net allocation of ₹1.71 lakh crore for the Department of Fertilisers in 2026–27. The allocation aims to shield farmers from volatility in global fertiliser prices and supply disruptions, and to maintain stable input costs for the agricultural sector.
Under the urea subsidy, provisions have been made for both indigenous production and imports to bridge the gap between domestic availability and demand, while retaining statutorily controlled prices for farmers. The subsidy framework continues to ensure reasonable returns for manufacturers and uninterrupted fertiliser supply across the country.
The Budget also maintains support under the Nutrient-Based Subsidy (NBS) scheme for phosphatic and potassic fertilisers, covering both domestically produced and imported inputs. This is intended to encourage balanced use of nitrogen, phosphorus and potassium nutrients, improve soil health and enhance farm productivity.
The Direct Benefit Transfer (DBT) system remains central to fertiliser subsidy delivery, enabling greater transparency, efficiency and real-time monitoring of fertiliser sales. Allocations have also been provided for the Fertiliser Subsidy Management System, including expenditure on information and communication technology infrastructure.
In addition, the Budget extends support for the promotion of organic fertilisers through Market Development Assistance and funding for research and development. These measures align with the government’s broader push towards sustainable and environmentally responsible agricultural practices.
Overall, the Union Budget 2026–27 underscores the government’s resolve to protect farmer interests, ensure fertiliser affordability, strengthen domestic capacity and promote balanced and sustainable nutrient use through targeted and transparent subsidy support.
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