The Indian Government’s Ministry of Chemicals and Fertilizers has received a significant increase in budget for the fiscal year 2022-23. Total available budget (BE + Supp.1 + CFI + Supp.2) is INR 254801 Crore for FY’2022-23. This 233% increase from the original allocation of INR 109187 Crores has been made to ensure timely payments of subsidies to fertiliser companies and provide farmers with readily available fertilisers at reasonable prices throughout the year.
As of March 2023, the Indian government has spent almost 100% of the available fertiliser subsidy budget, with a total expenditure of INR 254815 Crore. Of this, INR 168692 Crore has been spent on urea subsidies and INR 86123 Crores on P & K subsidies.
The increase in the fertiliser subsidy budget will have a positive impact on the availability and affordability of fertilisers for farmers. As a result, farmers will be able to access fertilisers more easily and at reasonable prices, contributing to the growth of the agriculture sector in the country.