Mumbai : Welcoming the Union Budget 2026, the Fertiliser Association of India (FAI) said the government’s continued commitment to fertiliser subsidies, farm-sector investments and technology-led agriculture provides a strong foundation to accelerate productivity, sustainability and nutrient security in line with the vision of Viksit Bharat 2047. With ₹1,70,799 crore allocated for fertiliser subsidies, over ₹1 lakh crore for agricultural development schemes, and projected GDP growth of 6.8–7.2%, FAI believes the financial framework is robust.

Importantly, FAI noted that structural measures such as policy continuity, logistics development through 20 new national waterways, and the proposed rationalisation of tariff and GST structures will streamline costs, improve cash flows, and strengthen the operating environment for the fertiliser industry, ultimately ensuring timely and affordable access to nutrients for farmers across the country.

FAI highlighted the following key allocations and policy measures announced in the Budget that are critical for the fertiliser and agriculture ecosystem:

KEY FERTILISER SUBSIDY ALLOCATIONS

  • Total Fertiliser Subsidy: Rs. Rs 1,70,799 crore 2026-27 (Rs. 1,86,460 crore in RBE 2025-26)
  • Urea Subsidy: Rs. 1,16,799 crore (Rs. 1,26,460 crore in RBE 2025-26)
  • P&K Fertilisers Subsidy: Rs. 54,000 crore (Rs. 60,000 crore in RBE 2025-26)
  • Organic Fertilisers & Bio-inputs: Rs. 90 crore (supports soil health and balanced nutrient use)

MAJOR AGRICULTURE SECTOR ALLOCATIONS

  • PM-Kisan: Rs. 63,500 crore
  • Modified Interest Subvention Scheme: Rs. 22,600 crore (concessional agri-loans)
  • PM Fasal Bima Yojana: Rs. 12,200 crore
  • PM-AASHA: Rs. 7,200 crore
  • Agriculture Infrastructure Fund: Rs. 910 crore

KEY BUDGET HIGHLIGHTS FOR FERTILISER SECTOR

  • Policy Continuity: Ensures timely availability of fertilisers at affordable prices; government provides additional subsidy to insulate farmers from raw material price volatility or finished products volatility in international market.
  • Logistics Development: 20 new national waterways linking mineral-rich regions with ports; coastal cargo share to increase from 6% to 12% by 2027
  • GST Rationalization: Focus on simplification of tariff structure and addressing inverted GST – improves cash flows and operating environment

Technology Adoption: Bharat-VISTAAR (multilingual AI tool) to integrate Agristack with ICAR practices for precision farming and optimal fertiliser use