Hike in fuel prices, shortage of fertilisers worry paddy farmers

LocalBusiness & Finance
16 May 2026 • 6:24 AM MYT
Tribune
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Image from: Hike in fuel prices, shortage of fertilisers worry paddy farmers
Farmers say diesel price hike could sharply raise paddy cultivation costs ©File

With the paddy sowing season barely 20 days away, Punjab farmers are facing fresh concerns over a sharp increase in diesel prices and shortage of fertilisers such as urea and Di-Ammonium Phosphate (DAP).

Farmers said the Rs 3 per litre hike in diesel prices announced on Friday would significantly increase the cost of paddy cultivation.

Balkar Singh, a farmer from Khiali Chahlanwali village, near Mansa, said the increase in diesel prices could raise production costs by Rs 5,000 to Rs 10,000 per acre.

“Farmers use diesel to run tractors, combine harvesters, crop residue management machinery and tubewells. The minimum support price (MSP) of paddy has been increased by just Rs 72 per quintal, which will be offset by rising input costs,” he said.

According to estimates, nearly 50 per cent of diesel sales in Punjab during June-September are linked to the agriculture sector. Diesel is used to operate around 5.5 lakh tractors, 1.5 lakh diesel-powered tubewells, combine harvesters and nearly 1.2 lakh crop residue management machines.

AAP chief spokesperson Kuldeep Singh Dhaliwal termed the diesel price hike “disastrous” for farmers and accused the BJP-led Centre of hurting the farming sector. AAP leaders also staged protests in Amritsar, Ludhiana and Jalandhar.

Diesel being rationed

Monty Sehgal, spokesperson of the Petrol Pump Dealers Association, said diesel sales at several retail outlets were now being rationed during the peak agricultural season.

Punjab is also facing a shortage of fertilisers ahead of the paddy season. Against the total urea requirement of 16.5 lakh metric tonne till July-end, around 9 lakh metric tonne is currently available. By the end of June, availability is expected to reach 11 lakh metric tonne, still below demand.

Official figures also show that only 50,000 tonne DAP is available against a projected demand of 2 LMT till June 30.

Farmers said rising input costs and shortage of fertilisers could adversely affect paddy cultivation this year.