India hikes fertiliser subsidy as costs soar after Middle East war

NEW DELHI, April 9, 2026 (AFP): India has hiked subsidies for farming fertilisers by 11 percent from last year to support its vast agriculture sector from surging prices sparked by the Middle East war.

The agricultural sector helps sustain over 45 percent of people in India, the world's most populous nation, making it an influential voting bloc.

"The subsidy would be provided to the fertiliser companies as per approved and notified rates, so that fertilisers are made available to farmers at affordable prices," a cabinet statement on Wednesday read.

Individual farms are small and often unproductive, and successive Indian governments have regularly intervened to protect them from foreign competition.

"In view of the recent trends in the international prices of fertilisers and inputs like urea... government has decided to approve the NBS (Nutrient Based Subsidy) rates," it added.

The 415 billion rupees ($4.48 billion) scheme will run for six months for the summer crops, beginning this month.

Disruptions to fertiliser supplies caused by the Middle East war pose a double threat to global food security through scarcity and high prices, the World Trade Organization warned last month.

Iran's restrictions on the Strait of Hormuz during the conflict choked a vital transit route for oil and gas -- as well as fertilisers.

A third of the world's fertilisers normally transit the strait, and the disruption has prompted multiple warnings about the impact on food production.