New Delhi, July 29 -- The Union government's fertiliser subsidy is expected to increase sharply due to the continued disruption in the supply of di-ammonium phosphate (DAP) from China, one of its key sources.

According to a recent report by CareEdge Ratings, international fertiliser prices have already surged in response to the disruptions, posing a fresh challenge for the Indian government to shield farmers from rising input costs during the crucial kharif season.

Since 2023, India has been witnessing reduced supplies of DAP from China, a trend that has intensified in 2025. By early this year, shipments came to a complete halt.

From April 2025, Chinese authorities have been withholding inspection clearances for DAP and speciality fert...