Cabinet approves Rs 62,370 crore fertiliser subsidy for Rabi season, up 64% from last year
Announcing the decision at the Cabinet briefing, Union Minister Ashwini Vaishnaw said the move would support domestic fertiliser manufacturing without putting an additional financial burden on farmers.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a Rs 62,370.02 crore subsidy for Phosphatic and Potassic (P&K) fertilisers for the Rabi 2026–27 season, marking an increase of around 64 per cent compared to the previous year.
The tentative subsidy requirement is Rs 24,417.73 crore higher than the Rs 37,952.29 crore allocated for the Rabi 2025–26 season. The approved Nutrient-Based Subsidy (NBS) rates will remain applicable from October 1, 2026, to March 31, 2027.
Announcing the decision at the Cabinet briefing, Union Minister Ashwini Vaishnaw said the move would support domestic fertiliser manufacturing without putting an additional financial burden on farmers.
"Through this entire process, domestic manufacturing will increase, and farmers will not face any additional burden," Vaishnaw said.
According to the Cabinet release, the decision aims at the "Rationalisation of subsidy on P&K fertilizers in view of recent trends in the international prices of fertilizers and inputs."
The subsidy will cover various P&K fertilisers, including Di-Ammonium Phosphate (DAP) and different NPKS grades, which are widely used during the Rabi cropping season.
Under the scheme, fertiliser companies will receive subsidies at approved and notified rates to ensure that farmers can purchase these products at affordable prices.
"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 release stated.
The government currently provides 28 grades of P&K fertilisers, including DAP, to farmers at subsidised rates through fertiliser manufacturers and importers.
The Nutrient-Based Subsidy scheme has been operational since April 1, 2010. Under the scheme, subsidies are determined based on the nutrient content of fertilisers to keep their prices affordable for farmers.
The latest revision takes into account changes in international prices of fertilisers and key inputs, including urea, DAP, MOP and sulphur.
The government said the approved rates would help ensure the smooth availability of P&K fertilisers at reasonable prices throughout the Rabi 2026–27 season.