The Union Budget 2026–27 presented by the Union Finance Minister Nirmala Sitharaman, reaffirms the Government’s sustained commitment to ensuring timely availability of fertilizers to farmers at affordable prices, while supporting domestic production and balanced nutrient use.

For the financial year 2026–27, a net budgetary allocation of estimated Rs. 1.71 lakh crore has been provided to the Department of Fertilizers, reflecting the Government’s focus on safeguarding farmers against volatility in global fertilizer prices and supply disruptions.

Under the Urea Subsidy, provision has been made for both indigenous production and imports of urea to bridge the gap between domestic availability and demand, while maintaining statutorily controlled prices for farmers. The subsidy mechanism continues to ensure reasonable returns to producers and uninterrupted supply across the country.

The Budget also provides continued support under the Nutrient Based Subsidy (NBS) scheme for phosphatic and potassic (P&K) fertilizers, both indigenous and imported. This is aimed at promoting balanced use of NPK nutrients, improving soil health, and enhancing agricultural productivity.

The Direct Benefit Transfer (DBT) system in fertilizer subsidy remains an integral part of subsidy delivery, ensuring transparency, efficiency, and real-time monitoring of fertilizer sales. Provision has also been made for the Fertilizer Subsidy Management System, covering establishment and ICT-related expenditures.

In addition, allocations have been provided for the Policy on Promotion of Organic Fertilizers, including Market Development Assistance and support for research and development, reinforcing the Government’s emphasis on sustainable and environmentally responsible agriculture.

Overall, the Budget 2026–27 underscores the Government’s resolve to protect farmer interests, ensure fertilizer affordability, strengthen domestic capacity, and promote balanced and sustainable nutrient use through targeted and transparent subsidy support.