Government Faces Heat Over Fertiliser Shortages and Rs 59 Billion Subsidy Burden

Lawmakers have challenged government officials over recurring chemical fertiliser shortages and rising state subsidies, interrogating Ministry of Agriculture leadership over chronic procurement delays and distribution failures. Ministry Secretary Dr. Rajendra Prasad Mishra told a parliamentary committee that meeting national fertiliser demand requires an estimated Rs 59 billion subsidy, citing state support on di-ammonium phosphate that has reached roughly Rs 120 per kilogram.

The fiscal strain persists despite the Ministry of Finance expanding this fiscal year's fertiliser budget to Rs 42.46 billion to import 550,000 tonnes. Ministry officials attribute the deficit to fixed domestic retail rates against soaring global prices, alongside growing farming demand. Distribution also remains hindered, with farmer representatives warning that local cooperatives frequently abandon quotas because of steep freight costs and a retail margin of only 25 paisa per bag.

To address long-term dependence, Minister Geeta Chaudhary has appointed a cross-ministerial task force, giving it 30 days to draft a legal framework for state procurement from planned domestic fertiliser factories.