Early monsoon to up fertiliser demand; govt may hike subsidy
Millions of farmers across the country are preparing to plant an array of crops, such as rice, corn, soya and pulses. The summer season accounts for nearly half of the annual food production in the world’s most populous country.
The government expects robust fertiliser demand due to an earlier-than-expected and abundant monsoon, an official said after a review on Monday, adding that the country will provide additional subsidy to farmers if required for the upcoming kharif or summer-sown season.
Millions of farmers across the country are preparing to plant an array of crops, such as rice, corn, soya and pulses. The summer season accounts for nearly half of the annual food production in the world’s most populous country.
According to the India Meteorological Department, monsoon rains are expected to hit India’s Southern coast on May 27, five days early, which augurs well for bumper harvests. The rains begin their onset on the coasts of Kerala and typically cover the whole country by mid-July. The department had last month predicted above-average monsoon rains for the second straight year in 2025.
“Early monsoon rains will trigger sowing of crops, especially rice in large swathes. There are sufficient stocks of fertiliser and seeds. Any additional need for subsidies to farmers will be met,” a second official who took part in the review meeting said.
On January 1, the Union cabinet had cleared a fresh tranche of fertiliser subsidy to cushion higher global prices due to geopolitical uncertainties.
Then, the government signed off on a proposal to top up the subsidy allocation for di-ammonium phosphate (DAP), a widely used fertiliser, with an additional outlay of ₹3,850 crore.
Under the NBS policy, the government offers, on an annual basis, a fixed rate of subsidy on a per kilogram basis for crop nutrients containing nitrogen (N), phosphate (P), potash (K) and sulphur (S) to shield farmers from high market prices.
The farmer-friendly decisions come in the backdrop of ongoing protests by agriculturists in Punjab, who are demanding legally-guaranteed minimum support prices or MSPs. MSPs are federally-determined floor prices for 23 key crops aimed at avoiding distress sales.
For the fiscal year 2025-26, the government has allocated approximately ₹1.84 lakh crore for fertiliser subsidies, from the revised estimate of ₹1.89 lakh crore in financial year 2024-25.
