Subsidy on phosphate and potash fertilizer approved for Rabi 2026-27

In a Union Cabinet meeting chaired by Prime Minister Narendra Modi, the rates for Nutrient Based Subsidy (NBS) on Phosphate and Potash (P&K) fertilizers for the Rabi season 2026-27 have been approved. According to an official report from the PIB, this subsidy will be implemented for the period from 01.10.2026 to 31.03.2027. The primary objective of this decision is to make various types of fertilizers, including DAP and NPKS grades, easily available to the country's farmers at cheap and affordable prices.

Under the decision taken by the government, the estimated budget requirement for the Rabi 2026-27 season has been set at approximately ₹62,370.02 crore. This figure is significantly higher compared to the previous year, i.e., the Rabi 2025-26 season. The budget requirement for Rabi 2025-26 was ₹37,952.29 crore, against which an increase of ₹24,417.73 crore has been made this year. According to a report by Amar Ujala, Union Minister Ashwini Vaishnaw, while announcing this decision, stated that this allocation will directly benefit farmers and reduce their agricultural production costs.

Providing information regarding the government's strategy behind this scheme, official sources stated that fertilizer manufacturers and importers will supply fertilizer to farmers at subsidized rates. The government is currently making a total of 28 grades of P&K fertilizers, including DAP, available to farmers. This entire process is managed through the NBS scheme, which has been in implementation since 01.04.2010. Taking into account the fluctuations in the prices of raw materials for fertilizers such as urea, DAP, MOP, and sulphur in the international market, the government has decided to fix these subsidy rates. Fertilizer companies will be provided with subsidies as per the rates approved and suggested by the government, so that there is no increase in prices while delivering fertilizer to farmers.

These comprehensive decisions taken by the Union Cabinet are part of the agriculture sector, but other development-oriented projects have also been approved alongside it. According to a report by Amar Ujala, the central government has approved a total package of ₹77,101 crore. In addition to the agriculture sector, this package also includes other important sectors. This includes the approval for the extension of the Noida-Greater Noida Metro Rail project at a cost of ₹2,390 crore to strengthen public transport in the Delhi-NCR region. This project will provide millions of daily commuters with a faster and more convenient transport option.

Additionally, two credit guarantee funds of ₹9,111 crore have also been approved to encourage micro-units and new entrepreneurs. The aim of this decision is to ease the flow of loans to small industries. The government believes that such policy decisions will provide momentum to both the rural economy and micro-industries simultaneously. While projects like the metro and national warehouses will create long-term socio-economic value, fertilizer subsidies and credit guarantee funds will provide immediate relief and liquidity to productive sectors in the current financial year.

The fertilizer subsidy system in India has been working in the interest of farmers for years. Under the Nutrient Based Subsidy (NBS) scheme, the government determines the subsidy based on the nutrients in the fertilizer. The objective of this arrangement has been to encourage farmers to use balanced fertilizers and to ensure the country's food security. The government has always remained committed to adopting a farmer-centric approach to prevent fertilizer shortages and to relieve farmers from economic burdens. With this new approval, the continuous supply of fertilizer to farmers in the upcoming Rabi season has been ensured.