# India’s fertiliser subsidy costs nation 36% to 182% more than it delivers, finds new study

> A Climate Trends study of wheat and paddy cultivation in eight Indian states found that, after fiscal and environmental costs are counted, the social return in every wheat case was 36% to 182% below farmers’ direct financial benefit; two cases had negative social returns. The study attributes the gap partly to the artificially low fixed price of urea, which encourages heavy nitrogen use, and reports declining fertiliser efficiency.

- Date: 2026-11-09 · published 2026-11-10T00:13:58.813Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/90411-india-s-fertiliser-subsidy-costs-nation-36-to-182-more-than-it-delivers-finds
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

The findings highlight how subsidised urea prices can sustain demand while shifting costs to public finances, energy inputs, soil and water. Any policy change to urea pricing or subsidies could alter fertiliser demand and costs for Indian crop producers.

## Read by commodity

- RICE: neutral
- UREA: neutral
- WHEAT: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 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 | 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 | 2021-02-01 | [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 | 2020-09-25 | [India’s Fertilizer Under Pressure \| World Fertilizer](https://feedsoft.ai/events/51053-india-s-fertilizer-under-pressure-world-fertilizer.md) | -4.3% | -4.0% |
| WHEAT | 2026-07-28 | [US calls out India for its farm protectionism, subsidy regime at WTO review](https://feedsoft.ai/events/18290-us-calls-out-india-for-its-farm-protectionism-subsidy-regime-at-wto-review.md) | -1.0% | +2.3% |
| WHEAT | 2024-12-29 | [Food subsidy may surpass BE by Rs 20,000-crore - Economy News \| The Financial Express](https://feedsoft.ai/events/10458-food-subsidy-may-surpass-be-by-rs-20-000-crore-economy-news-the-financial.md) | -1.8% | +1.0% |
| WHEAT | 2020-12-16 | [Explained: How can Punjab achieve crop diversification? \| Explained News - The Indian Express](https://feedsoft.ai/events/49612-explained-how-can-punjab-achieve-crop-diversification-explained-news-the-indian.md) | +0.7% | +6.9% |

## Sources

- timesofindia.indiatimes.com: https://timesofindia.indiatimes.com/city/chandigarh/indias-fertiliser-subsidy-costs-nation-36-to-182-more-than-it-delivers-finds-new-study/articleshow/135683089.cms

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