Cabinet approves Rs 37,216 cr subsidy on phosphatic, potassic fertilisers

The Union Cabinet on Friday approved a Rs 37,216 crore subsidy on phosphatic and potassic (P&K) fertilisers for the Kharif (summer-sown) season this year as part of its efforts to provide soil nutrients at a reasonable rate. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a proposal for fixing the Nutrient Based Subsidy (NBS) rates for Kharif season 2025 (from April 1, 2025, to September 30, 2025,) on Phosphatic and Potassic (P&K) fertilisers.

The budgetary requirement for Kharif season 2024 will be Rs 37,216.15 crore, Information and Broadcasting Minister Ashwini Vaishnaw told reporters here.

The minister said the government has ensured that the retail prices of DAP (Di-ammonium phosphate) remain at the present level.


The subsidy fund requirement for the Kharif season is around Rs 13,000 crore, more than the budgetary requirement for Rabi seasons 2024-25.

The decision will ensure "availability of fertilisers to farmers at subsidised, affordable and reasonable prices will be ensured".

"Rationalisation of subsidy on P&K fertilisers in view of recent trends in the international prices of fertilisers and inputs," it added.

The subsidy on P&K fertilisers, including NPKS grades, will be provided based on approved rates for Kharif 2025. The subsidy would be provided to the fertiliser companies, as per approved and notified rates so that nutrients are made available to farmers at affordable prices.

The Centre is making available 28 grades of P&K fertilisers to farmers at subsidised prices through nutrient manufacturers/importers.

The subsidy on P&K fertilisers is governed by the NBS Scheme with effect from April 2010.