NEW DELHI, 1 February 2026: The Union Budget 2026–27 has reinforced the government’s commitment to protecting farmers from rising input costs by allocating an estimated ₹1.71 lakh crore to the Department of Fertilizers, ensuring continued access to affordable and timely fertilizer supplies across the country.
Presented by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman, the budget emphasizes shielding farmers from global price volatility and supply chain disruptions while supporting domestic production and promoting balanced nutrient use.
A significant portion of the allocation will fund the Urea Subsidy, covering both indigenous production and imports to bridge the gap between domestic availability and demand. The mechanism ensures that urea prices remain statutorily controlled for farmers while providing reasonable returns to manufacturers and maintaining uninterrupted nationwide supply.
The government has also extended support under the Nutrient Based Subsidy (NBS) scheme for phosphatic and potassic (P&K) fertilizers. The initiative aims to encourage balanced application of nitrogen, phosphorus, and potassium nutrients, improve soil fertility, and enhance long-term agricultural productivity. Policymakers view balanced fertilization as critical to reducing soil degradation and increasing crop yields sustainably.
Technology continues to play a central role in subsidy delivery. The Direct Benefit Transfer (DBT) system remains the backbone of fertilizer distribution, enabling real-time tracking of sales, improving transparency, and minimizing leakages. Additional provisions have been made for the Fertilizer Subsidy Management System, including ICT infrastructure and monitoring tools to strengthen oversight.
The budget also signals a shift toward greener practices. Dedicated allocations under the Policy on Promotion of Organic Fertilizers include market development assistance and research and development support, encouraging farmers to adopt environmentally responsible alternatives alongside conventional inputs.
Overall, the 2026–27 allocation reflects a dual strategy: ensuring immediate affordability for farmers while laying the groundwork for sustainable, nutrient-balanced, and technology-enabled agriculture — a move aimed at improving productivity and long-term soil health across India.
