This Budget brings together productivity, resilience, and affordability in a way that reflects the evolving needs of Indian agriculture. The focus on district-level outcomes, better seeds, diversified cropping, and multilingual digital advisory platforms has the potential to meaningfully improve on-farm decision-making and input efficiency, provided execution remains closely aligned with ground realities.
The fertiliser allocations underline a steady commitment to domestic capability. Support of ₹91,000 crore for indigenous urea and ₹34,000 crore for domestically produced P&K fertilisers, alongside imported fertiliser support of ₹32,000 crore for urea and ₹20,000 crore for P&K, reinforces supply security while maintaining farmer access to affordable nutrients. The emphasis on customs duty rationalisation and addressing inverted GST structures is particularly important, as it helps streamline costs, improve cash flows, and create a more predictable operating environment.
Overall, the approach strengthens alignment between agricultural priorities and industrial sustainability, supporting farmers today while building a more resilient and efficient fertiliser ecosystem for the future.
This Budget pushes agriculture towards decisions that are more local, more scientific, and more accountable. Stronger seed systems, focused support for pulses and diversified crops, and district-level programmes create the conditions for farmers to plan better and use inputs more efficiently. Multilingual digital advisory tools and enhanced credit access, including higher Kisan Credit limits, reinforce this shift by enabling timely, informed decisions at the farm level.
The fertiliser allocations provide continuity while signalling a clear preference for domestic capability and supply stability. Budgeted support of ₹1,16,805 crore for urea and ₹54,000 crore under the nutrient-based subsidy framework, alongside ₹91,000 crore for indigenous urea and ₹34,000 crore for domestically produced P&K fertilisers, strengthens resilience amid global volatility. Fertiliser support remains a significant fiscal commitment, with ₹1,70,781 crore allocated under fertiliser subsidies in Budget 2026–27, reflecting the importance of input affordability and supply assurance. Continued support for organic fertilisers and bio-inputs, with an allocation of ₹90 crore, complements efforts towards balanced nutrient use and soil health.
What will now shape outcomes is how quickly customs duty rationalisation and GST corrections reduce friction across the supply chain. These changes directly affect costs, working capital cycles, and fertiliser availability during peak seasons. With steady execution, the system can support balanced fertilisation, healthier soils, and a more predictable operating environment for agriculture.”
About The Fertiliser Association of India (FAI)
The Fertiliser Association of India (FAI), established in 1955, is a premier non-profit organisation which represents the ecosystem stakeholders such as fertiliser manufacturers, importers, technology providers, equipment suppliers, and researchers across the country. With a mission to enhance the operational efficiency of the fertiliser sector and promote balanced and scientific fertilisation, it plays a crucial role in strengthening India’s agricultural productivity and food security. It also serves as a bridge between industry and government and facilitates dialogues between them while offering policy inputs. With its four regional offices, technical divisions, training programmes, specialised studies, and international collaborations, FAI contributes immensely to continuous improvement in production, distribution, sustainability, and fertiliser use efficiency in the country. Most notably, it also publishes widely respected journals and research materials, which help shape policy and industry decisions.
