**Executive Summary**
The Union Budget 2026-27, presented on February 1, 2026, allocates an estimated ₹1.71 Lakh Crore to the Department of Fertilizers to ensure affordable fertilizer availability for farmers. This budget reinforces the government's commitment to balanced and sustainable fertilizer use, supporting domestic production and balanced nutrient use. The budget aims to safeguard farmers from volatility in global fertilizer prices and supply disruptions.
**Key Points / Main Content**
* **Budget Allocation:**
* ₹1.71 Lakh Crore allocated to the Department of Fertilizers.
* **Fertilizer Subsidy:**
* Provision for Urea Subsidy to support indigenous production and imports, maintaining controlled prices for farmers.
* Continued support for Nutrient Based Subsidy (NBS) scheme for phosphatic and potassic (P&K) fertilizers to promote balanced NPK use and improve soil health.
* **Subsidy Delivery:**
* Direct Benefit Transfer (DBT) system continues to be an integral part of subsidy delivery, ensuring transparency, efficiency, and real-time monitoring of fertilizer sales.
* Fertilizer Subsidy Management System covers establishment and ICT-related expenditures.
* **Sustainable Agriculture:**
* Allocations provided for Policy on Promotion of Organic Fertilizers, including Market Development Assistance, and support for research and development.
**Impact Analysis**
**Stakeholder: Farmers**
* **Impact:** Ensuring timely availability of fertilizers at affordable prices, safeguarding against volatility in fertilizer prices and supply disruptions.
* **Action Required:** No direct action required, benefit from the subsidized fertilizer availability.
**Stakeholder: Fertilizer Producers**
* **Impact:** Urea subsidy mechanism ensures reasonable returns to producers.
* **Action Required:** Continue domestic production and imports of urea.
**Stakeholder: Department of Fertilizers**
* **Impact:** Responsible for net budgetary allocation of ₹1.71 Lakh Crore.
* **Action Required:** Efficiently manage the allocated funds, implement DBT system effectively, and promote sustainable fertilizer use.
Key Entities Referenced
Union Budget 2026-27: The central government's annual financial statement for the fiscal year 2026-2027, specifically focusing on allocations and commitments related to fertilizers and farmer support.
Department of Fertilizers: The central government department responsible for fertilizer policy and related initiatives.
Nutrient Based Subsidy (NBS) scheme: A government scheme that provides subsidies for phosphatic and potassic (P&K) fertilizers to promote balanced nutrient use.
Direct Benefit Transfer (DBT): A system for fertilizer subsidy delivery that ensures transparency and efficiency in real-time monitoring of fertilizer sales.
Ministry of Chemicals and Fertilizers :
Department of Fertilizers
Union Budget 2026–27 : Continued Commitment
to Affordable Fertilizers and Farmer Support
Estimated ₹1.71 Lakh Crore Allocation to Ensure Affordable
Fertilizers
Budget Reinforces Commitment to Balanced and Sustainable
Fertilizer Use
Posted On: 01 FEB 2026 4:51PM by PIB Delhi
The Union Budget 2026–27 presented by the Hon’ble Union Finance Minister, Smt. Nirmala Sitharaman,
reaffirms the Government’s sustained commitment to ensuring timely availability of fertilizers to farmers
at affordable prices, while supporting domestic production and balanced nutrient use.
For the financial year 2026–27, a net budgetary allocation of estimated ₹1.71 Lakh Crore has been
provided to the Department of Fertilizers, reflecting the Government’s focus on safeguarding farmers
against volatility in global fertilizer prices and supply disruptions.Under the Urea Subsidy, provision has been made for both indigenous production and imports of urea to
bridge the gap between domestic availability and demand, while maintaining statutorily controlled prices
for farmers. The subsidy mechanism continues to ensure reasonable returns to producers and uninterrupted
supply across the country.
The Budget also provides continued support under the Nutrient Based Subsidy (NBS) scheme for
phosphatic and potassic (P&K) fertilizers, both indigenous and imported. This is aimed at promoting
balanced use of NPK nutrients, improving soil health, and enhancing agricultural productivity.
The Direct Benefit Transfer (DBT) system in fertilizer subsidy remains an integral part of subsidy
delivery, ensuring transparency, efficiency, and real-time monitoring of fertilizer sales. Provision has also
been made for the Fertilizer Subsidy Management System, covering establishment and ICT-related
expenditures.
In addition, allocations have been provided for the Policy on Promotion of Organic Fertilizers, including
Market Development Assistance and support for research and development, reinforcing the Government’s
emphasis on sustainable and environmentally responsible agriculture.
Overall, the Budget 2026–27 underscores the Government’s resolve to protect farmer interests, ensure
fertilizer affordability, strengthen domestic capacity, and promote balanced and sustainable nutrient use
through targeted and transparent subsidy support.
The Union Budget 2026–27 reaffirms the commitment to affordable fertilizers with
a massive allocation of ₹1.71 Lakh Crore. Here is what it means for the sector. 🧵
👇 #ViksitBharatBudget #UnionBudget pic.twitter.com/yuSRVcVUTi
— Department of Fertilizers (@fertmin_india) February 1, 2026
***
Neeraj Kumar Bhatt/Shatrughna Prasad
(Release ID: 2221682) Visitor Counter : 658
Read this release in: Urdu , Tamil , Kannada