--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20260624-indias-fertilizer-subsidy-bill-faces-record-overrun-as-dap-imports-clear-at-935t/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # India’s fertilizer subsidy bill is set to exceed previous records as DAP imports are finalized at $935 per tonne Publication Date: 2026-06-24T17:00:00-04:00 Last Updated: 2026-06-24T08:00:26-04:00 Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/) Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Asia & Emerging Markets](https://www.fertilizerdaily.com/trade-and-policy/asia-emerging-markets/), [Food Security](https://www.fertilizerdaily.com/trade-and-policy/food-security/), [Trade & Policy](https://www.fertilizerdaily.com/trade-and-policy/) ![Indian farmer spreading fertilizer in the agriculture field.](https://www.fertilizerdaily.com/wp-content/uploads/2026/06/indian-farmer-spreading-fertilizer-in-the-agriculture-field-stockpack-istock-scaled.jpg) New Delhi is absorbing the rise in global fertilizer costs, as record DAP import prices and higher urea costs further widen the gap between market and regulated retail prices. India’s fertilizer subsidy program faces increasing fiscal pressure as rising global prices push government spending beyond budgeted limits. Recently, a consortium of state-owned and cooperative fertilizer companies secured about 1.3 million tonnes of DAP at **USD 930-935 per tonne CFR**, one of the highest prices in recent years, significantly raising subsidy needs. The government maintains the retail urea price at **Rs 276 per 45-kilogram bag**, even as import-parity prices are near **Rs 78,000 per tonne**, according to Agro Spectrum India. At these levels, New Delhi covers over 90% of urea’s economic cost. A similar gap exists for DAP, with the retail price fixed at **Rs 1,350 per bag** despite rising import costs due to supply disruptions in the Strait of Hormuz. To protect farmers from higher input costs in the 2026 Kharif season, the Indian cabinet raised the Nutrient-Based Subsidy (NBS) rates, effective from April 1 to September 30. Subsidies are now **Rs 47.32 per kilogram for nitrogen, Rs 52.76 for phosphate, Rs 2.38 for potash, and Rs 3.16 for sulfur**, with increased support for nitrogen, phosphate, and sulfur compared to the previous Rabi season. While these rates prevent retail price hikes, they also increase the government’s fiscal burden. India uses about **40 million tonnes of urea each year**, with domestic production meeting **87%** of demand. However, this production depends on imported liquefied natural gas, exposing manufacturers to higher feedstock costs after energy supply disruptions in the Strait of Hormuz. Increased production costs and expensive imports are expected to push total fertilizer subsidies above the 2026-27 budget allocation. Analysts expect the government to keep regulated fertilizer prices in place through the Kharif season due to the political sensitivity of input costs ahead of the upcoming state elections. Longer-term reforms, such as extending the Nutrient-Based Subsidy to urea, are under discussion but unlikely in the near future. Source: [Agro Spectrum India](https://agrospectrumindia.com/2026/05/29/high-cost-urea-and-dap-imports-deepen-pressure-on-indias-fertiliser-subsidy-regime.html) Tags: [DAP](https://www.fertilizerdaily.com/tag/dap/), [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [fertilizer subsidy](https://www.fertilizerdaily.com/tag/fertilizer-subsidy/), [food security](https://www.fertilizerdaily.com/tag/food-security/), [import tender](https://www.fertilizerdaily.com/tag/import-tender/), [India](https://www.fertilizerdaily.com/tag/india/), [Middle East](https://www.fertilizerdaily.com/tag/middle-east/), [nitrogen fertilizer](https://www.fertilizerdaily.com/tag/nitrogen-fertilizer/), [Strait of Hormuz](https://www.fertilizerdaily.com/tag/strait-of-hormuz/), [urea](https://www.fertilizerdaily.com/tag/urea/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.