Government Increases Fertilizer Budget, Ensures Stable Supply for Farmers
New Delhi, March 28, 2025 – The government has increased the budget allocation for fertilizers to meet rising demand and ensure steady supply to farmers. The final allocation for the Department of Fertilizers has been raised from ₹1,68,130.81 crore (as per Budget Estimate 2024-25) to ₹1,91,836.29 crore through Supplementary Demands for Grants passed by Parliament.
Similarly, under the Nutrient Based Subsidy (NBS) scheme, the budget has been increased from ₹45,000 crore to ₹54,310 crore, ensuring there is no reduction in funding.
For the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), which has been extended till 2025-26, the government has approved an overall outlay of ₹93,068.56 crore for the period 2021-22 to 2025-26.
Ensuring Timely Fertilizer Supply
To maintain an adequate supply of fertilizers, the Department of Agriculture and Farmers Welfare (DA&FW) assesses state-wise and month-wise requirements before each cropping season. The Department of Fertilizers then allocates and monitors supply through the Integrated Fertilizer Monitoring System (iFMS), an online web-based system. Weekly video conferences with state officials help address supply issues, and any shortfall is met through imports planned in advance.
Subsidized Pricing for Farmers
Urea remains available to farmers at a Maximum Retail Price (MRP) of ₹242 per 45 kg bag, a price that has remained unchanged since March 2018. The government provides subsidies to manufacturers/importers to cover the gap between the market price and the farmgate price.
For Phosphatic & Potassic (P&K) fertilizers, the government follows the NBS scheme, where subsidies are provided based on nutrient content. While the P&K sector is decontrolled, fertilizer companies set reasonable MRPs, monitored by the government.
To stabilize Di-Ammonium Phosphate (DAP) prices, the government approved a one-time special package beyond NBS rates, offering an additional ₹3,500 per metric ton (MT) subsidy from April 1, 2024, to March 31, 2025.
Additionally, India continues to engage with resource-rich nations to secure affordable fertilizer imports. Agreements and MoUs with global suppliers ensure reliable fertilizer availability.
This information was shared by Union Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.
