The Union Cabinet has approved a fertiliser subsidy of Rs 62,370.02 crore for the Rabi 2026 to 27 season to ensure farmers have access to essential agricultural nutrients at affordable prices. 

The allocation is around 64% higher than the Rs 37,952.29 crore approved for the previous Rabi season, reflecting the rise in international fertiliser and raw material prices.

The subsidy will apply from 01 October 2026 to 31 March 2027 under the Nutrient Based Subsidy (NBS) scheme. It covers phosphatic and potassic (P&K) fertilisers, including Di Ammonium Phosphate (DAP) and different NPKS grades.

Global fertiliser prices have remained under pressure due to geopolitical tensions, supply chain disruptions and higher input costs. Prices of important materials such as DAP, muriate of potash, sulphur and other fertiliser inputs have influenced the government’s decision to increase support.

The additional allocation of Rs 24,417.73 crore is intended to help fertiliser companies maintain supplies without passing the full increase in costs on to farmers. Under the NBS framework, the government provides subsidies to manufacturers and importers at approved rates, allowing them to sell fertilisers at more affordable prices.

The decision is particularly important during the winter cropping season, when farmers require fertilisers for crops such as wheat, pulses and oilseeds. The government currently covers 28 grades of P&K fertilisers under the NBS scheme.

By supporting fertiliser availability and limiting the impact of international price increases, the subsidy aims to control cultivation costs and provide greater price stability for farmers.

While the higher allocation offers relief to the agriculture sector, it also increases the government’s subsidy burden. Effective implementation and stable global fertiliser prices will be important in managing future expenditure.

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