New Delhi, Nov. 12 -- The 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 the Gulf region, based on 2024 trade data. International urea prices rose from around $400 per tonne before the conflict to more than $850 per tonne in April. Di-ammonium phosphate (DAP) prices increased from approximately $580 to $770 per tonne, according to the WTO. Urea prices subsequently eased to around $453 per tonne in June. The pressure on phosphate fertilisers has persisted. An assessment by the International Food Policy Research Institute in September said phosphate supplies remained tight and expensive, with sulphur shortages continuing to constrain production and trade. Nitrogen markets were moving closer to pre-war levels. The increase of Rs.244.18 billion comes as disruptions to fertiliser supplies through the Strait of Hormuz have affected global markets, particularly phosphate and sulphur, key inputs in fertiliser production. The subsidy will be provided to fertiliser companies at the approved rates to ensure availability to farmers at affordable prices. The subsidy budget for the previous Rabi season was Rs.379.52 billion. At the time, the government had fixed the per-kg nutrient subsidy at Rs.43.02 for nitrogen, Rs.47.96 for phosphate, Rs.2.38 for potash and Rs.2.87 for sulphur. The international fertiliser market has faced considerable disruption since the US-Israel attacks on Iran in February and the subsequent restrictions on shipping through the Strait of Hormuz, a key route for global fertiliser trade. India is particularly exposed to the disruption. According to the World Trade Organization, the country sourced almost two-thirds of its nitrogenous fertiliser imports from the Gulf region, based on 2024 trade data. International urea prices rose from around $400 per tonne before the conflict to more than $850 per tonne in April. DAP prices also increased from approximately $580 to $770 per tonne, according to the WTO. Urea prices subsequently eased to around $453 per tonne in June. However, the pressure on phosphate fertilisers has persisted. An assessment by the International Food Policy Research Institute in September said phosphate supplies remained tight and expensive, with sulphur shortages continuing to constrain production and trade. Nitrogen markets, meanwhile, were moving closer to pre-war levels....