# Fertilizer subsidy bill in FY23 seen at ₹2.3-2.5 lakh cr.; may drop  25% in FY24: FAI - The Hindu

> The Fertilisers Association of India expects the government's FY23 fertilizer subsidy bill to reach 2.3 to 2.5 lakh crore and could fall about 25% in FY24 as global prices moderate. The association said fixed urea costs are too low and fertilizer margins are very thin, which is discouraging investment.

- Date: 2022-12-06 · published 2022-12-06T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/38551-fertilizer-subsidy-bill-in-fy23-seen-at-2-3-2-5-lakh-cr-may-drop-25-in-fy24-fai
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Subsidy levels determine how much Indian urea and DAP demand is insulated from world prices, and thin margins may constrain future domestic output and import needs.

## 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 | 2021-02-01 | [Significant increase in fertiliser subsidy as Budget sidesteps reform](https://feedsoft.ai/events/12942-significant-increase-in-fertiliser-subsidy-as-budget-sidesteps-reform.md) | -4.3% | +0.7% |
| 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 | 2026-05-06 | [Hoeven Lays Out Priorities on Fertilizer, Farm Aid, Farm Bill and Trade \| American Ag Network](https://feedsoft.ai/events/19217-hoeven-lays-out-priorities-on-fertilizer-farm-aid-farm-bill-and-trade-american.md) | -4.5% | -27.3% |
| UREA | 2025-10-06 | [TFI Chicago Conference: Insights into Fertilizer Markets](https://feedsoft.ai/events/22724-tfi-chicago-conference-insights-into-fertilizer-markets.md) | -0.8% | -0.3% |

## Sources

- thehindu.com: https://www.thehindu.com/business/fertilizer-subsidy-bill-in-fy23-seen-at-23-25-lakh-cr-may-drop-25-in-fy24-fai/article66230904.ece

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