# Significant increase in fertiliser subsidy as Budget sidesteps reform

> India's Union Budget raised the fertiliser subsidy estimate for 2020-21 to Rs 133,947 crore, well above the original Rs 71,309 crore. The budget for the coming fiscal is Rs 79,530 crore, and it leaves the urea maximum retail price unchanged and does not move to a nutrient-based subsidy.

- Date: 2021-02-01 · published 2021-02-01T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/12942-significant-increase-in-fertiliser-subsidy-as-budget-sidesteps-reform
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Keeping subsidised urea prices fixed supports domestic fertiliser demand and limits the price signal to Indian farmers. Large subsidy payouts also clear industry arrears, which helps keep urea supply steady.

## Read by commodity

- UREA: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2024-11-01 | [Fertilizer subsidy payout declines in April-September  - The HinduBusinessLine](https://feedsoft.ai/events/5408-fertilizer-subsidy-payout-declines-in-april-september-the-hindubusinessline.md) | -4.7% | -5.0% |
| UREA | 2022-12-06 | [Fertilizer subsidy bill in FY23 seen at ₹2.3-2.5 lakh cr.; may drop  25% in FY24: FAI - The Hindu](https://feedsoft.ai/events/38551-fertilizer-subsidy-bill-in-fy23-seen-at-2-3-2-5-lakh-cr-may-drop-25-in-fy24-fai.md) | -0.8% | -8.9% |
| UREA | 2023-04-14 | [Fertiliser Security for Food Security in Southeast Asia: Going Local and Circular \| FULCRUM](https://feedsoft.ai/events/36333-fertiliser-security-for-food-security-in-southeast-asia-going-local-and.md) | -0.8% | +3.5% |
| UREA | 2023-04-18 | [Why stabilising the fertiliser market matters for Europe’s food industry](https://feedsoft.ai/events/36741-why-stabilising-the-fertiliser-market-matters-for-europe-s-food-industry.md) | +1.5% | +6.3% |
| UREA | 2021-04-14 | [Press Release:Press Information Bureau](https://feedsoft.ai/events/47542-press-release-press-information-bureau.md) | +1.5% | +0.7% |

## Sources

- indianexpress.com: https://indianexpress.com/article/india/significant-increase-in-fertiliser-subsidy-as-budget-sidesteps-reform-7170744/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.