ICRA projects India's fertilizer subsidy outlay to be around Rs 1.9 lakh crore for FY27, reflecting a significant fiscal commitment to agricultural affordability. While higher Nutrient-Based Subsidy (NBS) rates are expected to benefit domestic NPK producers, importers of Di-ammonium Phosphate (DAP) may face continued unprofitability due to global price increases. The agency anticipates potential shortfalls in budgeted allocations for P K fertilizers, possibly requiring supplementary government support.