India plans sulphur and acid subsidies for phosphates production

The Indian government is considering a new financial relief package for its domestic fertilizer industry aimed at protecting its agricultural sector from volatile global markets, according to a Department of Fertilizers (DoF) document dated 14 August. The proposal directly addresses the impact of the “West Asia crisis” on key raw material costs.
The core of the proposed scheme, which now awaits Cabinet endorsement, is a targeted subsidy to support the production of P&K fertilizers (DAP and NPKs including phosphoric acid, though excluding single superphosphate (SSP) and urea-SSP). The document outlines a 20% subsidy on the procurement of sulphur and sulphuric acid, tied to floor prices of $800/t and $266.67/t, respectively. Indian sulphur prices were assessed at $1,000-1,100/t CFR as of 13th August, with sulphuric acid at $370-390/t c.fr.
If approved, the measures will enter into effect from June 2026 through March 2027, the DoF said. The initiative is framed as part of the government’s wider Atmanirbhar Bharat (self-reliant India) strategy, designed to enhance domestic manufacturing capabilities and reduce vulnerability to international price swings. While the proposal is under review, the DoF has directed manufacturers to maintain current production levels to ensure an uninterrupted supply for the nation’s farmers during the Kharif 2026 and Rabi 2026-27 seasons.