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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.