The Union Cabinet on Wednesday approved a subsidy of Rs 62,370 crore on phosphatic and potassic (P&K) fertilisers for the 2026-27 rabi season, marking a 50 per cent increase over the kharif season that ended recently, as the government sought to protect farmers from rising global fertiliser prices.
Chaired by Prime Minister Narendra Modi, the Cabinet cleared the Department of Fertilizers' proposal to fix Nutrient Based Subsidy (NBS) rates for the period from October 1, 2026, to March 31, 2027.
Under the NBS scheme, the government provides a fixed subsidy per kilogram of nutrients โ nitrogen, phosphorus, potash and sulphur โ on notified P&K fertilisers, including DAP, MOP, SSP and NPK/NPKS grades. The rates are revised twice annually.
For the current rabi season, the subsidy has been fixed at Rs 94.21 per kg for nitrogen, Rs 66.11 per kg for phosphorus and Rs 10.42 per kg for sulphur. The subsidy for potash remains unchanged at Rs 2.38 per kg.
Briefing reporters after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the tentative budgetary requirement for the rabi season was Rs 62,370.02 crore, an increase of approximately Rs 24,417.73 crore over rabi 2025-26.
Vaishnaw attributed the increase in global fertiliser prices to the West Asia crisis and the continuing Russia-Ukraine conflict.
"The Modi government has provided a shield to farmers from geopolitical turmoil," he said.
He also announced that the retail price of di-ammonium phosphate (DAP) would remain unchanged at Rs 1,350 per 50-kg bag.
๐ฆ๐๐ฏ๐๐ถ๐ฑ๐ ๐ผ๐๐๐น๐ฎ๐ ๐ฒ๐ ๐ฐ๐ฒ๐ฒ๐ฑ๐ ๐ฏ๐๐ฑ๐ด๐ฒ๐
With the latest approval, the total subsidy on P&K fertilisers for 2026-27 has reached Rs 1,03,903 crore, nearly twice the Rs 54,000 crore originally allocated for the NBS scheme.
The rabi subsidy requirement alone exceeds the amount remaining under the government's overall fertiliser subsidy budget for the current financial year.
The Union Budget had earmarked Rs 1,70,799 crore for urea and nutrient-based fertiliser subsidies combined, covering both the kharif and rabi seasons.
Of this, approximately Rs 1.16 lakh crore was allocated for urea, while Rs 54,000 crore was provided for non-urea fertilisers.
During April-September, the Centre spent Rs 85,585 crore on urea subsidies and Rs 33,664 crore on nutrient-based fertilisers, taking the combined expenditure to approximately Rs 1.19 lakh crore, an increase of 11 per cent over the corresponding period last year.
By the end of September, the government had utilised 73 per cent of the budgeted allocation for urea and 62 per cent for nutrient-based fertilisers.
Around Rs 51,500 crore remained from the total allocation of Rs 1.71 lakh crore for the second half of the financial year, compared with the estimated rabi NBS requirement of Rs 62,370 crore.
๐๐ฑ๐ฑ๐ถ๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐๐ฝ๐ฝ๐ผ๐ฟ๐ ๐บ๐ฒ๐ฎ๐๐๐ฟ๐ฒ๐
The Cabinet also extended special provisions applicable to DAP to imported and domestic Triple Superphosphate (TSP) and imported Monoammonium Phosphate (MAP).
The freight subsidy on Single Superphosphate (SSP) will continue during the rabi season to promote its use as a more affordable alternative to DAP.
Additionally, the government decided to continue subsidies on imported and domestic Ammonium Sulphate.
The measures are intended to ensure the availability of different fertiliser grades at affordable prices while encouraging balanced nutrient application and reducing dependence on individual products.
๐ฃ๐ฎ๐ฐ๐ธ๐ฎ๐ด๐ฒ ๐ณ๐ผ๐ฟ ๐๐๐น๐ฝ๐ต๐๐ฟ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป
In a separate decision, the Cabinet approved a package aimed at increasing domestic production of sulphur and sulphuric acid, both important inputs in fertiliser manufacturing.
Under the package, sulphur manufacturers will receive support equivalent to 20 per cent of the actual procurement cost, subject to a floor price of USD 800 per tonne.
For sulphuric acid, assistance will be provided at 20 per cent of the actual procurement cost, subject to a floor price of USD 266.67 per tonne.
Vaishnaw said the Department of Fertilizers would issue detailed guidelines for implementing the package.
The initiative is expected to support domestic manufacturing capacity and reduce exposure to fluctuations in international raw material prices.
๐๐ฒ๐ฟ๐๐ถ๐น๐ถ๐๐ฒ๐ฟ ๐๐๐ผ๐ฐ๐ธ๐ ๐ฐ๐ผ๐บ๐ณ๐ผ๐ฟ๐๐ฎ๐ฏ๐น๐ฒ
The government maintained that fertiliser availability remained comfortable ahead of the rabi sowing season, with stocks of most major nutrients exceeding last year's levels.
As of November 10, urea stocks stood at 103.12 lakh tonnes, compared with 72.14 lakh tonnes a year earlier.
DAP availability increased to 28.65 lakh tonnes from 24.86 lakh tonnes, while NPK stocks rose to 60.87 lakh tonnes from 42.44 lakh tonnes.
Muriate of Potash stocks nearly doubled to 20.08 lakh tonnes from 10.78 lakh tonnes.
However, SSP stocks were marginally lower at 22.49 lakh tonnes, compared with 23.24 lakh tonnes in the corresponding period last year.
Welcoming the Cabinet's decision, Fertiliser Association of India (FAI) Chairman S Sankarasubramanian described the revised subsidy rates as "timely and positive".
He said the enhanced support reflected the government's commitment to protecting farmers from volatility in international fertiliser and raw material markets.
According to Sankarasubramanian, the measures would help maintain affordable fertiliser supplies, encourage balanced plant nutrition, support domestic production and strengthen India's self-reliance in the sector.