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Centre Boosts Fertiliser Subsidy by ₹19,000 Crore to Secure Farm Output

The government has increased the fertiliser subsidy outlay by approximately ₹19,000 crore through supplementary demands to ensure adequate supply for the upcoming Rabi season. Finance Minister Nirmala Sitharaman informed the Lok Sabha that the country currently holds a robust fertiliser stock of 163 lakh metric tonnes, a 26% increase from the previous year. The Lok Sabha approved a net additional spending of ₹2.01 lakh crore for the current financial year, which includes this subsidy boost and funds for schemes like PMGKAY. The minister assured that this supplementary spending will not push the fiscal deficit beyond the government's target for the year.

Key Points: Govt Ups Fertiliser Subsidy by ₹19,000 Crore for Farm Output

  • ₹19,000 crore extra fertiliser subsidy
  • 163 LMT robust fertiliser stock
  • Domestic urea production up since 2014-15
  • ₹2.01 lakh crore net additional spending approved
2 min read

Centre ups outlay for fertiliser subsidy by Rs 19,000 crore to boost farm output

Finance Minister Nirmala Sitharaman announces a ₹19,000 crore increase in fertiliser subsidy and robust stocks to support Kharif and Rabi seasons.

"There is no increase in expenditure beyond the BE of 2025-26 due to the second supplementary demand for grants. - Nirmala Sitharaman"

New Delhi, March 13

Finance Minister Nirmala Sitharaman informed the Lok Sabha on Friday that the country currently holds a robust fertiliser stock of 163 lakh metric tonnes for April.

This represents a significant 26 per cent increase over the previous year's stock of 128.54 LMT.

The Minister stated that while sufficient stocks are available for the Kharif season, the government is already making provisions through supplementary demands to ensure the Department of Fertilisers can prepare effectively for the upcoming Rabi season.

Addressing the house during the discussion on the second batch of Supplementary Demands for Grants for the 2025-26 Budget, the Finance Minister highlighted that the government is spending approximately Rs 19,000 crore more than the original Budget Estimate for fertiliser subsidies in the second supplementary demands.

She emphasised that the focus remains on boosting domestic manufacturing alongside necessary imports. Domestic urea production has seen a steady rise, growing from 225 LMT in 2014-15 to 306.67 LMT in 2024-25.

The Lok Sabha on Friday approved the second batch of supplementary demands for grants, which will enable the government to spend an additional Rs 2.01 lakh crore in the current financial year.

The government had sought approval to spend a gross additional amount of Rs 2.81 lakh crore. However, with estimated additional receipts of Rs 80,000 crore during the current fiscal year, the net additional cash spending stands at Rs 2.01 lakh crore.

In her reply to the debate in the House, Sitharaman said the new spending will not push the fiscal deficit beyond the government's target.

"There is no increase in expenditure beyond the BE of 2025-26 due to the second supplementary demand for grants," the Finance Minister explained.

The supplementary demands include grants for spending on setting up an Economic Stabilisation Fund of Rs 1 lakh crore.

Parliament's approval was also sought for an extra spending of Rs 19,230 crore towards fertilisers' subsidy and Rs 23,641 crore for subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Other major expenditure heads include Rs 41,822 crore for the defence ministry.

- IANS

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Reader Comments

P
Priyanka N
Good to see the focus on boosting domestic manufacturing. Reducing import dependency is crucial for long-term food security. The increase in urea production since 2014-15 is impressive. However, I hope part of this subsidy push also encourages a shift towards more organic and sustainable farming practices over time.
A
Aman W
Rs 19,000 crore extra is a huge amount. While supporting farmers is essential, I sincerely hope there is strict monitoring to prevent leakages and black marketing. We've heard stories of subsidised fertiliser being sold in the open market. The government must ensure it reaches the actual tiller.
S
Sarah B
The fiscal management seems sound—spending more without increasing the deficit target. The Economic Stabilisation Fund is an interesting concept. Overall, proactive planning for the agricultural season is a sign of a responsible government. Food inflation is a global worry, and such steps help.
K
Karthik V
As someone from a farming family in Tamil Nadu, I appreciate the forward planning for Rabi. But the real test is the monsoon. Subsidy is one part, but we also need better water management and crop insurance. The PMGKAY subsidy continuation is also a very good move for the poor.
N
Nikhil C
Respectfully, while the stock numbers look good, the constant need for supplementary demands raises questions about the accuracy of our original Budget Estimates. Is this prudent planning or reactive firefighting? Transparency in the initial costing process would build more confidence.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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