Fertiliser Association of India Proposes Customs Duty Cuts and Subsidy Reforms for Budget 2026-27
The Fertiliser Association of India has submitted proposals for the Union Budget 2026-27, advocating for customs duty cuts on essential raw materials and integration of urea into the nutrient-based subsidy framework. Key requests include exemptions on ammonia and phosphoric acid, relief from the Agriculture Infrastructure and Development Cess, and restoration of R&D tax deductions, all aimed at enhancing domestic fertilizer production and reducing import dependency. The association stresses the need for balanced fertilization and sustained policy support to address pricing disparities and improve soil health.
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The Fertiliser Association of India has proposed customs duty reductions on key raw materials, incentives for downstream projects, and integration of urea into the nutrient-based subsidy framework for Union Budget 2026-27. Key demands include exemption or reduction of customs duties on ammonia, phosphoric acid, sulphuric acid, rock phosphate, and sulphur.
The association seeks relief from the Agriculture Infrastructure and Development Cess and resolution of inverted GST duty issues. Recommendations also cover restoration of R&D tax deductions, incentives for downstream fertilizer projects, and support for compliance simplification.
The industry emphasizes balanced fertilization to improve soil health, citing disparities in fertilizer pricing. It calls for sustained policy support to bolster domestic phosphatic and potassic production and reduce import reliance amid fluctuating global fertilizer input prices. The budget will be presented on February 1, 2026.
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