According to government sources, the fertilizer ministry has sought a 100% increase in the fertilizer subsidy budget for FY2027 as global fertilizer prices and import costs have increased due to the West Asia conflict, PTI reported.Sources said the Department of Fertilizers has approached the Finance Ministry seeking doubling of fertilizer subsidy from Rs 1.71 lakh crore budgeted for the current financial year.The move comes amid concerns that disruptions related to the Middle East crisis could significantly increase the government’s subsidy burden. Last month, a senior official of the fertilizer department had indicated that the fertilizer subsidy bill could cross Rs 3 lakh crore this financial year if the disruption continues.However, sources said the final subsidy requirement may be reduced to some extent as domestic fertilizer production continues to increase.The government provides substantial subsidy on urea and phosphatic and potash (P&K) fertilizers. Currently, neem-coated urea is sold at Rs 242 per 45 kg bag, while di-ammonium phosphate (DAP) is priced at Rs 1,350 per 50 kg bag.According to sources, any prolonged disruption in shipping through the Strait of Hormuz will impact India’s fertilizer import bill and make the global procurement process more challenging.He said international fertilizer prices are rising while the total supply pool in global markets is shrinking.Sources identified two key concerns for policymakers: ensuring uninterrupted supplies through a complex tender process and managing the pace and scale of fertilizer price hikes.Despite these challenges, government sources say there are adequate fertilizer stocks available for the current Kharif sowing season.“For Kharif 2026, the fertilizer requirement has been re-estimated by the agriculture department at 383.9 lakh tonnes and against this the stock as on date is 197.56 lakh tonnes,” Aparna S Sharma, additional secretary in the Union Ministry of Chemicals and Fertilizers, said on Monday.He said the available stock is more than 51% of the Kharif season requirement, much higher than the normal level of around 33%.India is also increasing domestic production to reduce dependence on imports. In 2025, about 73% of the country’s fertilizer requirement is met through domestic production.India continues to import large quantities of urea and DAP to meet local demand.Total domestic fertilizer production, including urea, DAP, NPK and SSP, increased from 433.29 lakh tonnes in 2021 to a record 524.62 lakh tonnes in 2025.Urea production to increase from 225 lakh tonnes in 2014-15 to 306.67 lakh tonnes in 2024-25. However, India imported over 100 lakh tonnes of urea last financial year to bridge the demand gap.