Cabinet approves Rs 37,952 crore for nutrient-based fertiliser subsidy

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The Union Cabinet on October 28 approved a proposal of the Department of Fertilizers for fixing the Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilizers for the ongoing Rabi season. It stated the tentative budgetary requirement for the Rabi season to be approximately Rs 37,952.29 crore.

In a press release, the Ministry of Chemicals and Fertilizers noted that the budgetary requirement for the Rabi season, which began on October 10 this year and will end on March 31 next year, is approximately Rs 736 crore more than the budgetary requirement for Kharif season 2025.

These P&K fertilizers include Di Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades. They will be provided to farmers at affordable prices, based on approved rates for Rabi 2025-26 to ensure smooth availability of these fertilizers, the ministry said.

Union government's approval will ensure availability of fertilizers to farmers at a subsidized, affordable and reasonable price. It will also rationalize the subsidy on P&K fertilizers, in view of the recent trends in the international prices of fertilizers and inputs, the government added.

The Ministry of Chemicals and Fertilizers said that the government is making 28 grades of P&K fertilizers, including DAP, available to farmers at subsidized prices through fertilizer manufacturers/importers. "The subsidy on P&K fertilizers is governed by NBS Scheme w.e.f. 01.04.2010. In accordance with its farmer friendly approach, the Government is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices," it said.

"In view of the recent trends in the international prices of fertilizers & inputs like Urea, DAP, MOP and Sulphur, Government has decided to approve the NBS rates for Rabi 2025-26 effective from O 1.10.2025 to 31.03.2026 on Phosphatic and Potassic (P&K) fertilisers including DAP and NPKS grades. The subsidy would be provided to the fertilizer companies as per approved and notified rates so that fertilizers are made available to farmers at affordable prices," it added.