Rs 37.9K-cr subsidy for P&K fertilisers gets Cabinet nod

The Union Cabinet on Tuesday approved the proposal of the Department of Fertilisers for fixing the nutrient-based subsidy (NBS) rates for rabi season 2025-26 (from October 1, 2025, to March 31, 2026) on Phosphatic and Potassic (P&K) fertilisers.

The tentative budgetary requirement for this rabi season is approximately Rs 37,952.29 crore. This is approximately Rs 736 crore more than the budgetary requirement for kharif season 2025.

The subsidy for phosphate would be increased from Rs 43.60/kg in the kharif season-2025 to Rs 47.96/kg for the ongoing rabi season. Similarly, the subsidy for sulphur was raised from Rs 1.77/kg to Rs 2.87/kg.

Meanwhile, the subsidy rate for nitrogen and potash were kept unchanged at Rs 43.02/kg and Rs 2.38/kg, respectively.

I&B Minister Ashwini Vaishnaw said the subsidy rate has been fixed, considering the import price and factors like nutrient requirement, subsidy burden and MRP.

The subsidy on P&K fertilisers — including DAP (Di-Ammonium Phosphate) and NPKS (Nitrogen, Phosphorus, Potash and Sulphur) grades will ensure smooth availability of these fertilisers to the farmers at affordable prices.

“DAP and TSP are highly consumed fertilisers. The increase in subsidy rate will benefit farmers in the rabi season,” Vaishnaw said, adding that the government was bearing the burden to ensure fertilisers’ retail prices do not rise.

The NBS scheme has been in effect since April 2010 and subsidies are paid directly to fertiliser companies, enabling them to sell fertilisers to farmers at affordable prices. The government also provides freight subsidies for transport and distribution of fertilisers.