Published: 18 January 2026Economy
Food Allocation ₹2.03 Lakh Crore and Fertilizer Allocation ₹2.02 Lakh Crore in FY 2025-26; Reform Push Intensifies
India's combined food and fertilizer subsidies for FY 2025-26 reached ₹3.71 lakh crore — ₹2.03 lakh crore for food subsidy with 78.90 crore beneficiaries receiving free foodgrains as of October 2025 and ₹2.01 lakh crore allocated for fertilizer subsidy, with ₹1.93 lakh crore spent as of March 16, 2026. MSP payouts tripled to ₹3.33 lakh crore by June 2025. India remains 90% import-dependent for potash and 60% for phosphate.
Policy analysts have recommended merging subsidies into PM-KISAN, shifting to Direct Benefit Transfer, and transitioning to WTO-compliant 'Green Box' measures. An estimated 20-25% of subsidized urea leaks to non-agricultural sectors despite Neem-coating mandates. Rajasthan, with its large farmer base of 76 lakh PM-KISAN beneficiaries, is significantly impacted by subsidy reform discussions.
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The Bureau of Energy Efficiency (BEE), which celebrated its 25th Foundation Day on March 1, 2026, was established under which Act?
Explanation · Correct answer CBEE was established under the Energy Conservation Act, 2001. Its Standards and Labelling programme has saved 370 billion kWh of electricity since inception.
Frequently asked questions
What is the total agricultural subsidy in India for FY 2025-26?
India's combined food and fertilizer subsidies for FY 2025-26 reached **₹3.71 lakh crore** — ₹2.03 lakh crore for food (with 78.90 crore beneficiaries receiving free foodgrains as of October 2025) and ₹2.01 lakh crore allocated for fertilizer.
How many people are covered under India's food subsidy in FY 2025-26?
India's food subsidy of ₹2.03 lakh crore covers **813 million people** under the National Food Security Act.
How much did MSP payouts grow by June 2025?
**MSP (Minimum Support Price) payouts tripled to ₹3.33 lakh crore** by June 2025, reflecting significant expansion of procurement support.
Why does India need to reform agricultural subsidies?
India imports **90% of potash and 60% of phosphate** fertilizers, making subsidy costs volatile. Reforms are needed to improve targeting, reduce waste, and direct support more efficiently to farmers.
What is India's fertilizer import dependency situation?
India remains **90% import-dependent for potash and 60% for phosphate** fertilizers, creating vulnerability in fertilizer subsidy costs and food security.
