India's FY23 fertiliser subsidy may rise further to Rs 2.5 trillion

Finance Minister Sitharaman had said on May 21 that fertiliser subsidy would require an additional outlay of Rs 1.10 trillion over and above the budgeted amount, taking the outlay to Rs 2.15 trillion

India’s fertiliser subsidy bill for the current fiscal year (FY23) could rise further to around Rs 2.5 trillion as prices of chemical nutrients and natural gas are expected to remain elevated, a top government official told Business Standard.

“Fertiliser subsidy bill could go up to Rs 2.5 trillion. We are monitoring prices and will ensure there is no burden on the farmers. And maintaining the fiscal deficit target for the year will be difficult, especially after the recent excise duty cuts,” the official said, speaking on condition of anonymity.

The FY23 fertiliser subsidy budget estimate is Rs 1.05 trillion. This was set