Modi Govt's Rs 1.95 Lakh Crore Fertilizer Subsidy: Big Boost for Farmers

• Modi government's fertilizer subsidy is projected to reach Rs 1.95 lakh crore in FY 2025-26, a significant increase from the previous budget.
• The subsidy aims to reduce cultivation costs and support farmers, with stable urea prices maintained since 2018.
• Increased cultivated area and fertilizer consumption, especially during Kharif and Rabi seasons, have driven up the subsidy burden and import needs.
• India heavily relies on imports for DAP and potash, with long-term agreements in place, but international price fluctuations impact the budget.
• Despite high costs, the government prioritizes food security and farmer welfare, seeking to reduce import reliance through increased domestic production.

Why It Matters: Modi government projects a record Rs 1.95 lakh crore fertilizer subsidy to support farmers and ensure food security.