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The Union Cabinet has approved a ₹62,370 crore fertiliser subsidy package for the Rabi 2026-27 season, up 64% from ₹37,952 crore last year.
The package will help keep Di-ammonium Phosphate (DAP), a widely used fertiliser, available to farmers at ₹1,350 per bag.
How it works: the government pays part of the cost of these fertilisers to companies that make or import them, helping farmers buy them at lower prices.
It decides how much to pay each crop season, based on fertiliser prices in India and abroad, along with the cost of making them.
The government approved ₹37,952 crore for the previous Rabi season and ₹41,534 crore for the Kharif 2026 season. These fertilisers help farmers grow crops such as wheat, pulses and oilseeds.
Why it matters: India’s fertiliser imports rose 36% between FY24 and FY26, leaving it exposed to global price swings. The subsidy helps cushion farmers from higher costs as they prepare to sow winter crops.
Market reaction: fertiliser stocks rose as the package is expected to help companies supply affordable fertilisers despite higher production costs.
Shares of Fertilisers and Chemicals Travancore (FACT), Coromandel International and Gujarat State Fertilisers and Chemicals (GSFC) gained between 3-8%.
