en.Wedoany.com Reported - India's Fertilizer Ministry has requested the Finance Ministry to nearly double the fertilizer subsidy allocation for the current fiscal year, citing persistently rising costs of imported fertilizers and energy due to the Iran-Israel conflict.

This request comes just three months into the fiscal year that began in April, highlighting the speed and scale of recent cost increases. India is the world's largest importer of urea and heavily relies on imported diammonium phosphate (DAP) as well as natural gas for domestic nitrogen fertilizer production. Rising global energy prices are driving up production and import costs across the fertilizer industry.

Under India's subsidy system, the government fixes retail prices for urea and several key crop nutrients, compensating producers and importers for the difference between market costs and the prices paid by farmers. As global fertilizer and energy prices rise, the subsidy burden increases accordingly. India's reliance on imports further exacerbates risks, with the country meeting about 90% of its crude oil demand through imports.

This request from the Fertilizer Ministry is separate from the adjustment in nutrient-based subsidy (NBS) rates announced in April, which increased subsidies for phosphatic and potassic fertilizers by about 11%. If approved, this additional funding would become one of the largest mid-year adjustments to India's fertilizer subsidy budget in recent years, underscoring the fiscal pressure that global fertilizer price inflation places on import-dependent economies.

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