The Indian Cabinet, chaired by Prime Minister Narendra Modi, has approved a fertiliser subsidy outlay of approximately Rs 62,370.02 crore for the Rabi 2026-27 season, marking an increase of Rs 24,417.73 crore over the previous Rabi season.
The decision covers Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades, for the six-month period from October 1, 2026, to March 31, 2027.
The proposed allocation is significantly higher than the Rs 37,952.29 crore budgetary requirement for Rabi 2025-26, reflecting the government's decision to rationalise fertiliser subsidies in response to recent international price trends for fertilisers and key inputs.
The government's stated objective is to ensure uninterrupted availability of essential P&K fertilisers to farmers at affordable and reasonable prices during the Rabi season.
Under the approved framework, fertiliser manufacturers and importers will receive subsidies at the notified rates, enabling them to make fertilisers available to farmers at subsidised prices.
The subsidy will cover 28 grades of P&K fertilisers, including DAP and various NPKS formulations.
The latest decision comes against the backdrop of changing international prices of fertilisers and key inputs, including Urea, DAP, Muriate of Potash (MOP) and Sulphur.
Taking these trends into account, the government has approved revised NBS rates for the Rabi 2026-27 period to maintain the affordability and availability of P&K fertilisers.
The Nutrient Based Subsidy scheme has been in operation since April 1, 2010. Under the scheme, the government provides subsidies on P&K fertilisers through manufacturers and importers to ensure their availability to farmers at subsidised prices.
The government said its farmer-focused approach remains centred on ensuring an adequate supply of fertilisers at affordable rates, with the latest approval aimed at supporting farmers during the upcoming Rabi cropping season.
