The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Kharif cropping season (from April 1 to September 30). The decision is part of the government’s long‑standing fertiliser support policy that aims to ensure affordable access to key soil nutrients and balanced fertilisation for the country’s farmers.
Under the NBS scheme, the Government of India provides fixed subsidies per unit of nutrient including Nitrogen (N), Phosphorus (P), Potash (K) and Sulphur (S) contained in eligible fertilisers. These subsidies are paid directly to fertiliser manufacturers and importers, enabling them to supply fertilisers to farmers at subsidised and reasonable prices. The scheme operates under the Department of Fertilisers, Ministry of Chemicals and Fertilisers, and has been in place since April 1 2010.
Budgetary allocation and coverage
For the Kharif 2025 season the latest season for which official approval has been reported the Cabinet approved a budgetary outlay of ₹37,216.15 crore for the Nutrient Based Subsidy on P&K fertilisers. The allocation covers a wide range of fertiliser grades used by farmers across India, including widely used inputs such as Di‑Ammonium Phosphate (DAP), Muriate of Potash (MOP) and various NPK complex fertilisers.
The NBS scheme is designed to ensure that fertilisers containing essential nutrients such as phosphorus and potassium remain accessible at competitive prices, supporting crop yields and overall agricultural productivity during the kharif planting period.
Objective and policy framework
The NBS scheme represents a subsidy mechanism based on nutrient content rather than price control of finished fertiliser products. Under this framework, fertiliser companies receive a pre‑determined subsidy per kilogram of nutrient contained in the product, irrespective of global market price fluctuations. This approach aims to promote balanced fertilisation, allowing farmers to choose fertilisers that match the nutrient needs of their soils and crops rather than being driven solely by cost considerations.
The subsidy support is expected to help stabilise retail fertiliser prices even as international raw material costs fluctuate, thereby mitigating the impact of global market dynamics on domestic agricultural input costs.
Historical context and implementation
Since its launch in 2010, the NBS scheme has been a cornerstone of India’s fertiliser policy, encouraging the use of phosphorus and potash nutrients alongside nitrogen which is supplied through a separate subsidy regime for urea. NBS has been periodically reviewed and updated by the government, typically on a bi‑annual basis for the kharif and rabi seasons, ensuring that subsidy rates reflect contemporary market conditions and the nutrient needs of farmers.
For example, in the Rabi 2025–26 season, the Cabinet approved updated NBS rates effective from October 1, 2025, to March 31, 2026, covering 28 grades of P&K fertilisers with an estimated subsidy budget of approximately ₹37,952.29 crore. Those rates were also intended to ensure the availability of affordable fertilisers to farmers during the winter cropping season.
Significance for farmers and agriculture
The continuation of the NBS rates underlines the government’s commitment to supporting farmers by keeping fertilizer input costs affordable, particularly for nutrient‑rich P&K fertilisers that are essential for crop health and soil fertility. By subsidising a broad spectrum of fertilizer grades, the policy helps address nutrient deficiencies in Indian soils and supports balanced nutrient application an important factor in sustainable agriculture.
Agricultural experts and policymakers have emphasised that such subsidies are vital for maintaining domestic crop productivity and food security, especially for crops sown during the critical kharif season, which includes paddy, pulses, oilseeds, cotton and millets across various agro‑climatic zones.
Continuity and expectations for future seasons
Given the Ministry of Chemicals and Fertilisers’ practice of bi‑annual subsidy rate revisions, it is expected that updated Nutrient Based Subsidy rates for the Kharif 2026 season will be approved and formally notified by the Cabinet in due course, following consultations with relevant stakeholders and review of international price trends. However, as of now, verified official confirmation for Kharif 2026 subsidy rates is not publicly available. (No direct source found.)