Union Budget 2026–27 places agriculture at the intersection of resilience and affordability. With targeted district-level programmes, stronger seed systems, enhanced farm credit, and sustained fertiliser support, the Budget reinforces farmer-centric growth while prioritising domestic manufacturing and supply security. Rationalisation of customs duties and progress on GST inversion are expected to ease cost pressures and improve predictability across the fertiliser value chain.
Mr S. Sankarasubramanian, Chairman, The Fertiliser Association of India and Managing Director and CEO, Coromandel International
“This Budget brings together productivity, resilience, and affordability in a way that reflects the evolving needs of Indian agriculture. The focus on district-level outcomes, better seeds, diversified cropping, and multilingual digital advisory platforms has the potential to meaningfully improve on-farm decision-making and input efficiency, provided execution remains closely aligned with ground realities.
The fertiliser allocations underline a steady commitment to domestic capability. Support of ₹91,000 crore for indigenous urea and ₹34,000 crore for domestically produced P&K fertilisers, alongside imported fertiliser support of ₹32,000 crore for urea and ₹20,000 crore for P&K, reinforces supply security while maintaining farmer access to affordable nutrients. The emphasis on customs duty rationalisation and addressing inverted GST structures is particularly important, as it helps streamline costs, improve cash flows, and create a more predictable operating environment.
Overall, the approach strengthens alignment between agricultural priorities and industrial sustainability, supporting farmers today while building a more resilient and efficient fertiliser ecosystem for the future.”
Dr. Suresh Kumar Chaudhari, Director General, The Fertiliser Association of India
“This Budget pushes agriculture towards decisions that are more local, more scientific, and more accountable. Stronger seed systems, focused support for pulses and diversified crops, and district-level programmes create the conditions for farmers to plan better and use inputs more efficiently. Multilingual digital advisory tools and enhanced credit access, including higher Kisan Credit limits, reinforce this shift by enabling timely, informed decisions at the farm level.
The fertiliser allocations provide continuity while signalling a clear preference for domestic capability and supply stability. Budgeted support of ₹1,16,805 crore for urea and ₹54,000 crore under the nutrient-based subsidy framework, alongside ₹91,000 crore for indigenous urea and ₹34,000 crore for domestically produced P&K fertilisers, strengthens resilience amid global volatility. Fertiliser support remains a significant fiscal commitment, with ₹1,70,781 crore allocated under fertiliser subsidies in Budget 2026–27, reflecting the importance of input affordability and supply assurance. Continued support for organic fertilisers and bio-inputs, with an allocation of ₹90 crore, complements efforts towards balanced nutrient use and soil health.
What will now shape outcomes is how quickly customs duty rationalisation and GST corrections reduce friction across the supply chain. These changes directly affect costs, working capital cycles, and fertiliser availability during peak seasons. With steady execution, the system can support balanced fertilisation, healthier soils, and a more predictable operating environment for agriculture.”