India has raised its fertiliser subsidy for summer crops by 11.6% compared to last year to help farmers cope with higher global prices after the U.S.-Iran conflict.
The cabinet approved a subsidy scheme worth 415.34 billion rupees ($4.5 billion), aiming to keep the price of a 50-kg bag of diammonium phosphate (DAP) at 1,350 rupees, despite global price increases, said Information Minister Ashwini Vaishnaw.
India depends on imports for key fertilisers like urea, DAP, and muriate of potash, as well as liquefied natural gas used to make urea. About half of India’s DAP imports come from the Middle East, with Saudi Arabia as the largest supplier.
Since the Middle East conflict began, global DAP prices have risen around 20%, prompting India to issue a tender for 2.5 million metric tons of urea to maintain domestic supplies. India sources fertilisers mainly from Oman, Russia, China, Saudi Arabia, and Morocco.
This move aims to protect farmers and ensure steady crop production despite international supply disruptions.
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