India, Nov. 11 -- The Union Cabinet on Wednesday approved a Rs.62,370 crore subsidy budget for phosphatic and potassic (P&K) fertilisers for the 2026-27 Rabi season, an increase of 64.3% over the Rs.37,952 crore earmarked for the previous season, citing trends in the international prices of fertilisers and inputs.

The increase of Rs.24,418 crore comes as the international fertiliser market faces disruption since the US-Israel attacks on Iran in February. Restrictions on shipping through the Strait of Hormuz, a key route for global fertiliser trade, followed.

India is particularly exposed to the disruptions. According to the World Trade Organization (WTO), the country sourced almost two-thirds of its nitrogenous fertiliser imports from t...