New Delhi, Aug. 14 -- India is spending more to subsidize fertilizer even as much of what farmers apply to their fields is lost before crops can use it.

Around two-thirds of fertilizer applied to crops may not be absorbed by plants, leading to groundwater contamination, air pollution and inefficient use of subsidized farm inputs, according to manufacturers and experts.

The concern is particularly significant for India, the world's second-largest fertilizer consumer and largest urea importer, with the government's fertilizer subsidy bill crossing Rs.2.17 trillion in fiscal year 2026 (FY26). For FY27, the fertilizer ministry has proposed Rs.3.54 trillion in fertilizer subsidies.

India's annual fertilizer requirement was estimated at abou...