Rabi 2026-27: ₹62,370 Crore Nutrient-Based Subsidy for Phosphatic and Potassic Fertilisers

The news

The Union Cabinet on Wednesday approved a ₹62,370 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season 2026-27, covering the period from October 2026 to March 31, 2027. The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, was based on a proposal from the Department of Fertilisers to fix Nutrient Based Subsidy (NBS) rates for the season. Union Information and Broadcasting Minister Ashwini Vaishnaw told reporters that the government has protected farmers' interests by providing adequate fertiliser subsidy despite a sharp rise in global prices.

Mr. Vaishnaw said fertiliser prices have shot up immensely due to the West Asia crisis and the Russia-Ukraine war, but the Modi government has provided a shield to farmers from geopolitical turmoil. The subsidy will cover P&K fertilisers including DAP (di-ammonium phosphate) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades. The DAP rate will remain unchanged at ₹1,350 per 50 kg bag. The Cabinet approved ₹62,370 crore as subsidy for P&K fertilisers, according to the Minister.

When was the Nutrient Based Subsidy policy introduced?

The Nutrient Based Subsidy (NBS) policy for phosphatic and potassic fertilisers was introduced by the Government of India with effect from April 1, 2010. Under this policy, a fixed amount of subsidy is announced annually for each nutrient, namely Nitrogen (N), Phosphorus (P), Potash (K) and Sulphur (S), based on their content in the fertiliser. The policy was preceded by a system where Maximum Retail Prices were fixed for all fertilisers. Urea, the most widely used nitrogenous fertiliser, was kept outside the NBS regime and continues under a separate pricing and subsidy mechanism.

How does the Nutrient Based Subsidy work?

The Nutrient Based Subsidy (NBS) is a fertiliser subsidy framework in which support is linked to specified nutrient content and approved nutrient rates, rather than treating all fertiliser grades identically. The rabi season generally covers winter-sown crops, making timely access to soil nutrients important for cultivation decisions. The subsidy covers P&K fertilisers including DAP and NPKS grades, with DAP priced at ₹1,350 per 50 kg bag.

What has the subsidy achieved and what remains a concern?

The ₹62,370 crore approval seeks to cushion farmers from external price shocks caused by the West Asia crisis and the Russia-Ukraine war, keeping DAP prices stable at ₹1,350 per bag. However, affordable prices depend not only on subsidy but also on supply arrangements and distribution. Price protection and physical access are distinct policy concerns, and sustained availability during the rabi season will require timely distribution and monitoring of whether fertilisers reach farmers at the notified rates.