India Tables Second Supplementary Demand for Grants for FY26 with Net Cash Outgo of Rs 2.01 Lakh Crore
The Indian government presented the second supplementary demand for grants for FY26, seeking approval for 61 grants totaling a net cash outgo of Rs 2.01 lakh crore. This includes Rs 19,230 crore for fertilizer subsidy and Rs 15,000 crore under the Nutrient Based Subsidy Policy. The overall gross additional expenditure sought is Rs 2.81 lakh crore, with the remainder covered by departmental savings and enhanced receipts. The rising costs of urea and DAP are attributed to supply disruptions linked to the West Asia conflict.
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The Indian government has tabled the second supplementary demand for grants for FY26, requesting Parliamentary approval for 61 grants, including Rs 19,230 crore for fertilizer subsidies. The total gross additional expenditure sought amounts to Rs 2.81 lakh crore, with a net cash outgo of Rs 2.01 lakh crore.
This demand includes Rs 15,000 crore for the Nutrient Based Subsidy Policy, with Rs 5,244 crore for indigenous P&K-Gen and Rs 7,866 crore for imported P&K-Gen components. Urea subsidy expenditure of Rs 4,230 crore is also requested.
Fertilizer subsidy for FY26 is revised to Rs 1.86 lakh crore from Rs 1.67 lakh crore, while FY27 allocates Rs 1.71 lakh crore. The Fertilizer Association of India projects a 41% increase in fertilizer imports for the fiscal year. Rising urea prices reflect supply disruptions from West Asia, with domestic urea production relying significantly on imported LNG.
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