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India Eyes Fertilizer Subsidy Cuts, Farmers Brace for Costs
2 Feb
Summary
- India plans to reduce fertilizer subsidy spending for the next fiscal year.
- The proposed allocation for 2026-27 is 1.71 trillion rupees ($18.6 billion).
- This reduction may increase cultivation costs for farmers across the nation.
India's government is set to decrease its fertilizer subsidy expenditure in the next financial year, commencing in April. The proposed budget for the 2026-27 fiscal period earmarks 1.71 trillion rupees, equivalent to $18.6 billion, for the sector. This allocation represents a reduction from the revised figure of 1.86 trillion rupees allocated for the ongoing fiscal year.
This financial adjustment, announced by Finance Minister Nirmala Sitharaman during her annual budget speech, aims to bolster fiscal deficit reduction. However, the anticipated cutback in subsidies could translate into increased cultivation expenses for farmers within India, which is the world's most populous country.
