# Higher fertiliser subsidies expected to revive complex fertiliser demand, ease pressure on manufacturers: Report

> India's cabinet approved a Rabi-season fertiliser subsidy outlay of about Rs 62,400 crore for October 2026 to March 2027, up 64% year on year. Nitrogen, phosphorus and sulphur subsidy rates rose sharply, while potash stayed unchanged. A Dolat Capital report says the change should narrow the price gap between DAP and complex fertilisers.

- Date: 2026-11-13 · published 2026-11-13T09:11:50.967Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/97539-higher-fertiliser-subsidies-expected-to-revive-complex-fertiliser-demand-ease
- Commodities: [DAP](https://feedsoft.ai/c/DAP.md), [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Higher subsidies should lift complex fertiliser demand and reduce farmers' reliance on DAP, shifting phosphate and nitrogen purchases in India. This supports fertiliser manufacturers' margins but has little direct effect on feed grain prices.

## Read by commodity

- DAP: bullish ▲
- UREA: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DAP | 2021-07-30 | [China's major fertiliser makers to suspend exports amid tight supplies \| Reuters](https://feedsoft.ai/events/45993-china-s-major-fertiliser-makers-to-suspend-exports-amid-tight-supplies-reuters.md) | -2.0% | -1.6% |
| DAP | 2022-04-27 | [Cabinet clears higher subsidy for non-urea fertilisers  - The Hindu](https://feedsoft.ai/events/42150-cabinet-clears-higher-subsidy-for-non-urea-fertilisers-the-hindu.md) | -7.9% | -9.4% |
| DAP | 2021-05-13 | [Mosaic Co. Sues for Higher Duties on Fertilizer Imports](https://feedsoft.ai/events/47414-mosaic-co-sues-for-higher-duties-on-fertilizer-imports.md) | +1.0% | +6.5% |
| DAP | 2022-07-06 | [China Tightening Restrictions on Fertiliser Exports: Reports \| CZ app](https://feedsoft.ai/events/40419-china-tightening-restrictions-on-fertiliser-exports-reports-cz-app.md) | +4.7% | +0.3% |
| DAP | 2025-10-21 | [China Suspended Fertiliser Exports: India Faces Price Rise Before Rabi Season](https://feedsoft.ai/events/9555-china-suspended-fertiliser-exports-india-faces-price-rise-before-rabi-season.md) | +0.0% | -4.1% |
| UREA | 2021-01-14 | [MI&P expresses satisfaction over urea supply, demand situation - Business & Finance - Business Recorder](https://feedsoft.ai/events/49450-mi-and-p-expresses-satisfaction-over-urea-supply-demand-situation-business-and.md) | +3.5% | +15.5% |
| 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% |

## Sources

- tribuneindia.com: https://www.tribuneindia.com/news/business/higher-fertiliser-subsidies-expected-to-revive-complex-fertiliser-demand-ease-pressure-on-manufacturers-report/

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