The government’s fertiliser subsidy outgo may see a substantial increase in FY27 if the West Asia conflict prolongs, leading to elevated global prices of soil nutrients, officials said. They said the fiscal impact of a possible hike in global prices of fertilisers may not be largely reflected in FY26 subsidy outgo. “The real impact of possible rise in global prices in urea and di-ammonium phosphate (DAP) may push subsidy outgo next fiscal,” an official told FE. Trade sources said urea prices have increased by 11% to around $600/tonne (free on board) and DAP prices by 5% to $649 per tonne in the last one month. India imports about 30% of its annual fertiliser requirement of around 64-65 million tonne (MT). Countries in West Asia account for 40% of these imports.