New Delhi, November 11: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved Nutrient Based Subsidy (NBS) rates for Rabi 2026-27 on phosphatic and potassic (P&K) fertilisers, with a tentative budgetary requirement of about ₹62,370.02 crore.
The rates apply from 1 October 2026 to 31 March 2027.
Subsidy bill up about 64%
The requirement is about ₹24,417.73 crore, or roughly 64%, higher than the ₹37,952.29 crore provided for Rabi 2025-26. The government said the decision was taken in view of recent international price trends for urea, DAP, MOP and sulphur.
What it means for farmers
The government said the decision will ensure that fertilisers are available to farmers at subsidised, affordable and reasonable prices during the Rabi season, with the subsidy on P&K fertilisers rationalised in line with international prices.
Subsidy will be provided on P&K fertilisers, including DAP and NPKS grades, at the approved and notified rates for Rabi 2026-27. It is paid to fertiliser companies, which supply the fertilisers to farmers at subsidised prices.
Background
The government makes 28 grades of P&K fertilisers, including DAP, available to farmers at subsidised prices through manufacturers and importers. Subsidy on these fertilisers has been governed by the NBS scheme since 1 April 2010.