New Delhi, Nov 11: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a budgetary allocation of approximately Rs 62,370.02 crore for nutrient-based subsidies on phosphatic and potassic (P&K) fertilisers for the 2026-27 rabi season.
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The increased allocation is aimed at ensuring that farmers continue to get essential fertilisers at affordable and reasonable prices despite fluctuations in international fertiliser and raw material costs.
According to an official statement, the approved subsidy outlay is around Rs 24,417.73 crore higher than the Rs 37,952.29 crore allocated for the corresponding rabi season in 2025-26.
Subsidy To Cover DAP And NPKS Fertilisers
The approved Nutrient Based Subsidy (NBS) rates will remain applicable from October 1, 2026, to March 31, 2027, covering the entire rabi season.
The subsidy will apply to various P&K fertilisers, including Di-Ammonium Phosphate (DAP) and different grades of NPKS fertilisers. The government said the decision was taken after reviewing international price trends for fertilisers and key inputs such as urea, DAP, Muriate of Potash (MOP) and sulphur.
Under the arrangement, fertiliser companies will receive subsidies according to the approved and notified rates, helping ensure the availability of these products to farmers at controlled prices.
28 Grades Of P&K Fertilisers Under Subsidy Scheme
The Centre currently makes 28 grades of phosphatic and potassic fertilisers, including DAP, available to farmers at subsidised rates through manufacturers and importers.
The NBS scheme has been in operation since April 1, 2010. It determines subsidy support for P&K fertilisers based on their nutrient content, with the objective of making essential agricultural inputs accessible to farmers.
Focus On Affordable Fertiliser Supply
The latest Cabinet decision is expected to cushion farmers against the impact of rising international fertiliser prices and input costs during the ongoing agricultural season.
The government said the revised subsidy structure would support the uninterrupted availability of P&K fertilisers and help farmers manage cultivation expenses during the rabi crop cycle.
