The Union Cabinet chaired by Prime Minister Narendra Modi approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Rabi 2026-27 season, effective from October 1, 2026, to March 31, 2027. The tentative budgetary requirement for this subsidy allocation is approximately Rs. 62,370.02 crore, which represents a significant increase of approximately Rs. 24,417.73 crore compared to the Rabi 2025-26 season budget of Rs. 37,952.29 crore.
The subsidy approval aims to ensure the availability of fertilizers to farmers at subsidized, affordable, and reasonable prices while rationalizing the subsidy structure in view of recent trends in international prices of fertilizers and inputs including Urea, DAP, MOP, and Sulphur. The implementation strategy covers 28 grades of P&K fertilizers including DAP and NPKS grades, which will be provided to farmers through fertilizer manufacturers and importers. The subsidy mechanism operates under the NBS Scheme that has been in effect since April 1, 2010, reflecting the government's continued commitment to maintaining affordable fertilizer prices for agricultural producers.