HomeFinance NewsBudget 2023 | Rs 1.75 lakh crore allocated for fertiliser subsidy

Budget 2023 | Rs 1.75 lakh crore allocated for fertiliser subsidy

Union Finance Minister Nirmala Sitharaman on Wednesday (February 1) allocated Rs 1.75 lakh crore for the fertiliser subsidy.

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By Jomy Jos Pullokaran  February 1, 2023, 1:15:52 PM IST (Updated)

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Budget 2023 | Rs 1.75 lakh crore allocated for fertiliser subsidy
Presenting the last full Union Budget of the Narendra Modi-led National Democratic Alliance (NDA), Union Finance Minister Nirmala Sitharaman on Wednesday (February 1) allocated Rs 1.75 lakh crore for the fertiliser subsidy.


In FY 2022-23, Rs 1,05,262 crore has been allocated to the department of fertilisers for fertiliser subsidy, a decrease of 25 percent over the revised estimates of 2021-22.

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Further, the allocation for subsidies of Urea and nutrient-based fertiliser in 2022-23 is 17 percent and 35 percent lower than the revised estimates of 2021-22.

Fertiliser subsidy allocation (Rs crore)




In FY 2021-22, the department has been allocated Rs 1,40,122 crore at the revised stage, which is 75 percent higher than budget estimate (Rs 80,011 crore).

Note that the government had increased the subsidy rate for Phosphate by 204 percent from Rs 14.9 per kg in 2020-21 to Rs 45.3 per kg in 2021-22. This was in response to a sharp increase in international prices of raw materials used in the manufacture of fertilisers.

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In FY 2020-21, the actual expenditure included one-time allocation of Rs 32,155 crore to clear off pending dues of fertiliser subsidy of previous financial years. Dues had built up due to insufficient budget allocation over the years.

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