The impact of the recent hike in the international prices of fertiliser products and raw materials on the fertiliser sector in India is analysed. The effect on the domestic availability of fertilisers, their domestic production, and subsidy burden are examined. The results revealed that the agriculture sector faced a severe shortage of fertiliser products. Though India tried to increase domestic production by hiking the targeted monthly production, it failed to do so as it depends more on imported feedstocks and raw materials. The government was bearing the burden of the price hike by providing subsidies. For the first time in history, the revised estimate of fertiliser subsidy continuously increased over `1 lakh crore from 2020–21 to 2022–23.
