Budget Rs 15 Billion Short to Meet Fertiliser Target: Agriculture Minister

Minister for Agriculture and Livestock Development Ramnath Adhikari said on Thursday, August 14, that the budget allocated for procuring and supplying the targeted amount of chemical fertiliser this fiscal year was insufficient.

Responding to lawmakers’ queries in the House of Representatives, Adhikari said 491,000 tonnes of fertiliser—the highest ever—were imported last fiscal year, using almost all of the subsidy budget (Rs 26.83 billion of Rs 27.36 billion).

Even so, the supply fell short of demand, which has tripled in the past two decades with the growth of commercial farming and use of hybrid seeds. The ministry now projects an annual requirement of about 1.3 million tonnes.

Adhikari said the Rs 28.82 billion allocated for supplying 600,000 tonnes this fiscal year would fall short. “It will require Rs 44 billion to meet the target,” he said. “At current prices, the budget would only cover 360,000 tonnes.”

Tenders for 300,000 tonnes were initiated last year with the Ministry of Finance’s consent. While DAP and potash supply is stable, urea remains in short supply. Adhikari cited rising prices and persistent rain that has slowed unloading, bagging, and rail transport at Kolkata Port.

“Three ships loaded with fertiliser remain on hold there, delaying the arrival of 60,000 tonnes of urea,” he said. “Urea, which cost $420 per tonne a year ago, now costs over $600, while DAP has risen from $600 to over $1,000.”

The minister said Salt Trading Corporation, Krishi Samagri Company Limited, and the Nepali Consulate General in Kolkata are working to expedite transport.

Adhikari also claimed to have initiated legal and procedural reforms to improve supply and distribution. “The 14th amendment to the Public Procurement Regulations has added special provisions for fertiliser purchase, reducing the risk of tender failures and delays,” he said.

The government provides an 82% subsidy on urea, 64% on DAP, and 49% on potash. Ninety percent of fertiliser is distributed through provincial governments, prioritising areas with the highest consumption, arable land, irrigation availability, crop intensity, past fertiliser use, and current demand. The remaining 10% is kept as buffer stock and allocated by the ministry on the recommendation of Provincial Fertiliser Management Committees.

Provincial quotas are passed to local governments, which distribute fertilisers to cooperatives or private firms. These suppliers then deliver it to farmers through designated depots of Krishi Samagri Company and Salt Trading Corporation. Over 11,000 dealers, including cooperatives, agro-vets, and private firms, distribute fertiliser from 64 depots nationwide.

Around 2,000 to 2,500 tonnes of fertiliser are currently being distributed daily, Adhikari said.

To ensure systematic and transparent operations, the ministry has implemented a real-time Fertiliser Management Information System, allowing online monitoring of procurement and distribution. “Farmers must register in the system, which records details of the fertiliser purchased, including type, source, date, and price,” he said.