The Indian Government’s Ministry of Chemicals and Fertilizers has received a significant increase in budget for the fiscal year 2022-23. An additional INR 26325.1 Crores has been granted under Appendix-10, and INR 10000 Crores have been advanced from CFI, resulting in a total available fertiliser subsidy budget of INR 254801.04 Crores. 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 February 2023, India has spent INR 243509 Crores on fertiliser subsidies, which amounts to 96% of the total available budget and 111% of the earlier allocated budget of INR 218476 Crores. The amount spent on urea subsidies is INR 164909 Crores, equivalent to 108% of the earlier allocated budget of INR 153351 Crores. Meanwhile, INR 78600 Crores has been spent on P & K subsidies, which represents almost 121% of the earlier allocated budget for DAP subsidies, or INR 65122 Crores.
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.