Budget FY28 | Centre Weighs Up To 20% Higher Fertiliser Subsidy: Sources

The Centre is considering up to a 20% higher fertiliser subsidy allocation in the FY28 Union Budget amid rising global fertiliser and fuel prices, supply disruptions and geopolitical uncertainties, government sources told Business Today. The fertiliser subsidy bill for the current financial year is expected to exceed the budgeted ₹1.70 lakh crore and could cross ₹3 lakh crore, with more than 65% of the allocation already utilised. The government is examining a contingency buffer to shield farmers from elevated input costs. The final allocation will depend on Budget discussions and the trajectory of international fertiliser prices.