Government approves Rs 62,370 cr fertiliser subsidy for Rabi 2026-27

Pune: The Union Cabinet has approved the nutrient based subsidy of Rs.62,370 crore for RABI season 2026-27 on phosphatic and potassic fertilizers. This is Rs.24,417.73 crore or 64% more than the budgetary requirement for Rabi 2025-26 season, which was Rs 37,952.29 crore.

The Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for RABI Season 2026-27 (November 1, 2026, March 31, 2027) on Phosphatic and Potassic (P&K) fertilizers. “The tentative budgetary requirement for Rabi 2026-27 would be approximately Rs.62,370.02 crore. This is approximately Rs.24,417.73 crore more than the budgetary requirement for Rabi 2025-26 season. The budget for Rabi 2025-26 was Rs.37,952.29 crore,” a government release stated.

The war in West Asia has led to global shortages of fertilisers and escalation of their prices, as the government has said that the farmers will benefit by rationalisation of subsidy on P&K fertilizers in view of recent trends in the international prices of fertilizers and inputs. “Availability of fertilizers to farmers at subsidized, affordable and reasonable prices will be ensured,” the release said.


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The subsidy on P&K fertilizers including DAP and NPKS grades will be provided based on approved rates for Rabi 2026-27. ET had reported earlier that the government was planning to introduce differential subsidies for di-ammonium phosphate (DAP) under the Nutrient Based Subsidy (NBS) scheme, as surging sulphur prices made domestic production of the key fertiliser increasingly expensive.

Government is making available 28 grades of P&K fertilizers including DAP to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by the NBS Scheme from April 2010.

“In view of the recent trends in the international prices of fertilizers & inputs like Urea, DAP, MOP and Sulphur, Government has decided to approve the NBS rates for Rabi 2026-27 effective from November 1,2026 to March 31, 2027 on Phosphatic and Potassic (P&K) fertilizers including DAP and NPKS grades. 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.