The Union Cabinet approved a Rs 62,370.02 crore Nutrient-Based Subsidy for Rabi 2026-27 fertilizers, a 64% increase, ensuring affordable prices for farmers amidst rising international input costs.
Cabinet Approves Fertilizer Subsidy
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilisers for the Rabi 2026–27 season, with a tentative subsidy requirement of Rs 62,370.02 crore, an increase of around 64 per cent over the previous year.
According to the Cabinet’s decision, the subsidy requirement for the Rabi 2026–27 season is approximately Rs 24,417.73 crore higher than the Rs 37,952.29 crore allocated for the corresponding season in 2025–26. “The tentative budgetary requirement for Rabi 2026-27 would be approximately Rs.62,370.02 crore. This is approximate Rs.24,417.73 crore more than the budgetary requirement for Rabi 2025-26 season,” the cabinet release stated.
Implementation and Objectives
The approved subsidy rates will apply from October 1, 2026, to March 31, 2027, covering the Rabi cropping season. Speaking at the Cabinet briefing, Union Minister Ashwini Vaishnaw said, “Through this entire process, domestic manufacturing will increase, and farmers will not face any additional burden.”
The Cabinet further stated that the decision would ensure “Rationalisation of subsidy on P&K fertilizers in view of recent trends in the international prices of fertilizers and inputs.” The subsidy will cover P&K fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades, which are widely used by farmers.
Supporting Farmers
According to the release, “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.” The government currently provides 28 grades of P&K fertilisers, including DAP, to farmers at subsidised prices through fertiliser manufacturers and importers.
The Nutrient-Based Subsidy scheme has been in place since April 1, 2010, under which subsidies are provided on P&K fertilisers to keep their prices affordable for farmers. The government said the latest decision takes into account recent trends in international prices of fertilisers and inputs such as urea, DAP, MOP and sulphur. The subsidy rates approved for the Rabi season are intended to ensure the smooth availability of fertilisers to farmers at reasonable prices.
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