Discussions surrounding the Union Budget 2026 have intensified, and this time, a special focus on the interests of farmers is expected. Reports from various sectors are emerging, indicating potential relief for the agricultural sector. According to the latest information, the government is seriously considering increasing fertiliser subsidies to provide relief to farmers from rising fertiliser prices.
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Fertiliser Ministry Sends Proposal to Finance Ministry
According to sources, the Fertiliser Ministry has sent a proposal to the Finance Ministry requesting an increase in the allocation for fertiliser subsidies. The ministry argues that there are continuous fluctuations in the prices of raw materials in the international market. Due to this global uncertainty, providing fertilisers to farmers at affordable rates is becoming increasingly challenging.
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Impact of Global Market and Rising Costs
Many raw materials used in fertiliser manufacturing are imported from abroad. Disruptions in the global supply chain and price volatility are increasing the costs for companies. If the subsidy is not revised on time, it could directly impact farmers. The government wants to prepare in advance to mitigate this risk.
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How Much Could the Subsidy Increase?
According to reports, an increase of 10 to 15 percent in the total fertiliser subsidy allocation is possible. The total size of the subsidy in the financial year 2026 is estimated to be around ₹1.6 lakh crore. If the proposal is approved, farmers could receive significant relief in the upcoming Kharif and Rabi seasons.
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What Do the Previous Budget Figures Show?
In the previous Union Budget, the government had allocated approximately ₹1.18 lakh crore for urea subsidies. Around ₹49,000 crore was allocated for Nutrient-Based Subsidy (NBS) fertilisers. Given the increasing demand during both major farming seasons, a revision in the current budget is considered necessary.
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Preparing to ease the burden on companies
The government is trying to ensure the availability of fertilisers in the domestic market and prevent any shortages for farmers. Instead of putting additional financial pressure on fertiliser companies, the government may opt to increase subsidies. This would enable companies to import and produce sufficient quantities of fertilisers on time.
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What will be the benefit for farmers?
If the proposal to increase subsidies is approved, farmers will be the biggest beneficiaries. Fertiliser prices could remain stable, and the overall cost of cultivation would decrease. This will not only have a positive impact on production but will also strengthen the government’s goal of increasing farmers’ income.
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What does fertiliser subsidy mean?
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Fertiliser subsidy is a system under which the government provides financial assistance to fertiliser companies so that fertilisers can be made available to farmers at prices lower than the market rate. The objective is to make farming more affordable and protect farmers from rising prices.