India’s Fiscal Success: 23% Cut in Fertiliser Subsidy Expenditure in 2023-24 Compare to Previous Year and Its Impact on Global Prices

The Ministry of Fertilisers has effectively implemented strategies to ensure that farmers have consistent access to surplus and affordable fertilisers throughout the year, while also exerting influence on the international market to uphold reasonable prices.

In the fiscal year 2023-24, the Ministry of Chemicals and Fertilizers of the Indian Government has managed to reduce fertiliser subsidy expenditure by 23% compared to the previous fiscal year, with total spending amounting to Rs. 1,95,467 crores, down from Rs. 2,54,800 crores, however Fertiliser subsidy expenditure in FY’2023-24 was up by 24% compared to FY’2021-22.

As of March 2024, the Indian government has spent almost 100% of the available fertiliser subsidy budget, with a total expenditure of INR 1,95467 Crore. Of this, INR 1,30,221 Crore has been spent on urea subsidies and INR 65,200 Crores on P & K subsidies.

The reduction in the fertiliser subsidy budget and expenditure is poised to positively impact the availability and affordability of fertilisers for farmers, enabling easier access to fertilisers at reasonable prices and thereby fostering growth in the agriculture sector of the country. Additionally, the surplus fertiliser stocks in India will play a crucial role in stabilizing international fertiliser prices and ensuring the maintenance of a reasonable level in the global market.