The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Rabi 2026-27 season, covering the period from October 1, 2026, to March 31, 2027.
The tentative budgetary requirement for the six-month period has been estimated at ₹62,370.02 crore, an increase of ₹24,417.73 crore over the ₹37,952.29 crore allocated for the Rabi 2025-26 season.
The approved subsidy rates will apply to P&K fertilisers, including Di-Ammonium Phosphate (DAP) and various NPKS grades. The government aims to ensure the smooth availability of these fertilisers to farmers at affordable and reasonable prices throughout the season.
Under the NBS framework, subsidies will be provided to fertiliser companies according to the approved and notified rates. This support is intended to help manufacturers and importers make fertilisers available to farmers at subsidised prices while taking into account changes in international fertiliser and input costs.
The decision also seeks to rationalise subsidies in response to recent trends in global prices of fertilisers and key inputs, including urea, DAP, muriate of potash (MOP) and sulphur.
The government currently makes 28 grades of P&K fertilisers, including DAP, available to farmers at subsidised prices through fertiliser manufacturers and importers. The subsidy on these fertilisers is governed by the Nutrient-Based Subsidy Scheme, which has been in operation since April 1, 2010.
The NBS system links subsidy support to the nutrient content of fertilisers. Its implementation is intended to maintain the availability of essential nutrients for agricultural production while cushioning farmers from the impact of fertiliser prices.
The higher budgetary requirement for the coming Rabi season reflects the government’s decision to adjust subsidy support in view of international price trends and input costs. The continuation of the subsidy is expected to help maintain access to essential phosphatic and potassic fertilisers and support farmers during the winter cropping season.
(PIB)
