Fertiliser Subsidy

Budget 2025: The agri sector was hoping for continued policy support to boost rural economy, farmers income and crop productivity.

Budget 2025 likely to set aside Rs 1.7 lakh crore for fertiliser subsidy

The MDA scheme, aimed at promoting organic fertilisers and manure, is set to get an increased allocation of Rs 150 crore, up from Rs 100 crore in FY25

Budget 2025: Fertiliser industry eyes subsidy allocation, schemes for rural economy

Fertiliser stocks have gained momentum ahead of the 2025 Union Budget, driven by speculation about subsidy allocations.

Budget Snapshot: Tight DAP market unlikely to upset government’s fertiliser subsidy calculations

Global DAP market is expected to remain in tight equilibrium in near term amid export curbs by China and production outages

Food subsidy bill stays unchanged from Feb estimate at Rs 2.05 lakh cr in Budget 2024-25

The entire food subsidy bill is set to be spent on the Pradhan Mantri Garib Kalyan Anna Yojana, which was extended by five years by the Union Cabinet in November 2023 at a total cost of nearly Rs 12 lakh crore.

Budget 2024: Govt likely to stick to Rs 1.64 lakh crore fertiliser subsidy in FY25

The government will be aided in this by the fact that input costs have come off record highs, and a further boost to domestic urea production will also help. Moreover, according to a World Bank report, 'a resumption of China’s exports and lower-than-expected crop prices could contribute to further declines in fertiliser prices'.

Agriculture retains government's attention in Budget despite stable allocations

The focus is on directing more institutional credit and implementation of the key government schemes

Subsidy bill in FY25 Budget seen at Rs 3.81 lakh crore, down 8%

In November, the cabinet approved the government's proposal to extend the Pradhan Mantri Garib Kalyan Anna Yojana free foodgrain scheme for five more years until 2028 at a total cost of nearly Rs 12 lakh crore

Fertiliser subsidy allocation for FY25 likely lower than Rs 1.75 lakh cr

Several states have submitted plans for reducing use of chemical fertilisers. The centre will grant 50 percent of the subsidy saved as financial incentive to the states that are successful in reducing their use.

Budget Snapshot | Benign raw material prices to keep fertiliser subsidy bill in check

Despite the rise in late 2023, raw material prices are notably lower than the 2022 highs

FY24 fertiliser subsidy may be contained at Rs 1.88 lakh crore

Budget 2024-25: There were expectations that the fertiliser bill would reach Rs 2 lakh crore or even exceed that in the current fiscal year.

Chart of the Day: Falling fertiliser prices to lighten government subsidy bill

Price of widely used urea dropped 52.7 percent in June 2023 quarter 

Moneycontrol Daily: Your Essential 7

A daily round-up of the most interesting articles to help jump-start the day.

Cabinet approves Rs 1.08 lakh crore fertiliser subsidy for April-September kharif season

According to Fertiliser Minister Mansukh Mandaviya, while the amount of fertiliser subsidy is lower compared to last year, farmers will not have to pay more as prices have come down.

Govt will meet fiscal deficit aim as no risk of subsidies slippage: Fin Min official

“If inflation is 5 percent and GDP growth is likely at 5.5 percent, nominal GDP growth of 10.5 percent is likely with a tax buoyancy of 1. The government is not optimistic but realistic."

Chart of the day: Fertiliser subsidy may drop below budget estimates in FY24

The fall in raw material prices accelerated since the Union Budget on February 1

Cap natural gas prices to control rising fertiliser subsidy

The government should continue with the extant formula for the pricing of natural gas as per November 2014 guidelines

Union Budget 2023: FM allocates Rs 1.75 lakh crore to fertiliser subsidies

Union Budget 2023: The allocation for the next fiscal year is lower than the revised estimate for fertiliser subsidy spending of Rs 2.25 lakh crore for this year.

Fertiliser subsidy set to touch record Rs 1.65 lakh crore in FY23: Report

According to the report, in the past two fiscals, the government has paid an additional Rs 1.2 lakh crore and increased the budgeted subsidy.

Explainer: How India is trying to reduce reliance on imported fertilisers

India’s fertiliser imports had been rising even before the Russia-Ukraine conflict due to pandemic-related disruptions. With low self-sufficiency, volatility in global fertiliser supplies will have a major impact on India.

India plans over $40 billion for food, fertiliser subsidy for 2022/23: Report

For the current fiscal year the finance ministry had budgeted 835 billion rupees for fertiliser subsidies, although the real allocation could rise to a record 1.5 trillion rupees.

India faces record fertiliser subsidy in 2021/22

The figure is almost double the amount budgeted for fertiliser subsidies in the budget for this fiscal year ending on March 31.

Coromandel International and Chambal Fertilisers top stocks to play fertiliser subsidy theme

Elara Capital expects healthy volume growth in FY22 on the back of the forecast of normal Monsoon and low fertilisers prices. The margin of fertilisers companies will sustain, in our view, as raw material cost escalation has been offset by higher subsidy.

Despite economic distress, central government spending lower than last year in first half

Central government expenditure in the first half of 2020-21 was 99 percent of spending in same period of the last fiscal year.

Centre seeks states' support to implement DBT in fertiliser

The states were also told to complete necessary paperwork to enable the Centre to clear pending subsidy to the tune of Rs 4,000 crore to fertiliser manufacturers.