India, Pakistan and Kenya Increase Fertilizer Subsidies to Combat Costs
Governments in India, Pakistan, and Kenya have increased or requested higher fertilizer subsidies to stabilize food supplies and counter rising global prices.
Multiple nations are increasing financial support for fertilizer production and distribution to prevent food inflation and stabilize agricultural supplies. The Government of India is facing significant price pressures as the Ministry of Chemicals and Fertilisers requested the Ministry of Finance to double the FY27 subsidy allocation to approximately Rs 3.4 lakh crore, up from the budgeted Rs 1.71 lakh crore. This request follows a rise in urea support costs from Rs 2,900 to Rs 4,500 per bag, driven by shipping disruptions in the Strait of Hormuz and conflict in West Asia.
Despite these escalating costs, Indian officials plan to defer any supplementary demand for grants until after August to assess the impact of El Niño on rural demand. Simultaneously, the Government of Pakistan allocated Rs 20 billion to clear outstanding gas price arrears for fertilizer companies. This move is designed to provide liquidity to manufacturers and enable the recovery of notified gas prices.
In East Africa, the Government of Kenya more than doubled its fertilizer subsidy allocation for the 2026-27 budget estimates. The allocation rose from Sh8 billion in the previous financial year to Sh18 billion to support domestic agricultural productivity.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play