# India approves $8 bln subsidy for phosphate-based fertilizers

> India's cabinet approved an $8 billion subsidy increase for phosphate-based fertilizers. The decision responds to a spike in global nutrient prices driven by supply chain disruption, higher freight and energy costs after Russia's invasion of Ukraine.

- Date: 2022-04-27 · published 2022-04-27T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/42147-india-approves-8-bln-subsidy-for-phosphate-based-fertilizers
- Commodities: [DAP](https://feedsoft.ai/c/DAP.md), [Phosphate Rock](https://feedsoft.ai/c/PHOSROCK.md)

## Why it matters

Government subsidies cushion Indian fertilizer demand from record global phosphate prices, supporting import buying and keeping phosphate costs elevated for farmers and feed-grain production inputs.

## Read by commodity

- DAP: bullish ▲
- PHOSROCK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DAP | 2022-04-28 | 1 | -7.3% | -3.7 | India's $8bn phosphate subsidy approved April 27 reshapes demand and import pricing for DAP, the largest importer, and could trigger a sell-the-news reaction in a market at record highs, though a subsidy increase would normally be supportive. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DAP | 2021-10-12 | [India to provide additional subsidy for phosphate-based fertilizer-govt](https://feedsoft.ai/events/44884-india-to-provide-additional-subsidy-for-phosphate-based-fertilizer-govt.md) | +0.4% | +6.6% |
| DAP | 2021-10-01 | [Farmer Fertilizer Focus - Phosphates](https://feedsoft.ai/events/4700-farmer-fertilizer-focus-phosphates.md) | +4.6% | +4.6% |
| DAP | 2022-04-01 | [Farmer Fertilizer Focus - Phosphates](https://feedsoft.ai/events/5509-farmer-fertilizer-focus-phosphates.md) | -1.6% | -9.3% |
| DAP | 2025-04-04 | [April '25 Aussie Farmer Fertilizer Focus - Phosphate](https://feedsoft.ai/events/25438-april-25-aussie-farmer-fertilizer-focus-phosphate.md) | 0.0% | +2.3% |
| DAP | 2022-01-28 | [EXCLUSIVE India plans over $40 billion for food, fertiliser subsidy for 2022/23 - sources \| Reuters](https://feedsoft.ai/events/43458-exclusive-india-plans-over-40-billion-for-food-fertiliser-subsidy-for-2022-23.md) | -0.6% | +19.5% |

## Sources

- reuters.com: https://www.reuters.com/world/india/india-approves-8-bln-subsidy-phosphate-based-fertilizers-2022-04-27/

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