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Cabinet Approves ₹37,952 Crore Nutrient-Based Subsidy for Rabi 2025–26; Affordable Fertilizers for Farmers

Union Cabinet Fixes NBS Rates for Rabi Season 2025–26; DAP, NPKS Fertilizers to Be Subsidized
Indian Masterminds Stories

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Nutrient-Based Subsidy (NBS) rates for the Rabi season 2025–26 for Phosphatic and Potassic (P&K) fertilizers, including Di-Ammonium Phosphate (DAP) and NPKS grades. The subsidy will be applicable from October 1, 2025, to March 31, 2026.

The tentative budgetary requirement for the Rabi season is estimated at ₹37,952.29 crore, approximately ₹736 crore higher than the allocation for the Kharif season 2025. The move is aimed at ensuring timely and affordable availability of fertilizers to farmers while rationalizing subsidy expenditure in line with global market trends.

Ensuring Affordable Fertilizers for Farmers

The Cabinet’s approval will provide continuous access to P&K fertilizers at subsidized rates during the Rabi season. Farmers can expect smoother availability of key fertilizers such as DAP and NPKS, which are critical for enhancing crop yields and maintaining soil nutrient balance.

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Rationalized Subsidy Structure

The NBS rates for the Rabi 2025–26 season have been fixed based on recent international price trends of essential fertilizer inputs including Urea, DAP, Muriate of Potash (MOP), and Sulphur. The rationalized subsidy structure ensures prudent use of government resources while providing support to farmers.

Background: Nutrient-Based Subsidy (NBS) Scheme

Launched on April 1, 2010, the NBS Scheme provides 28 grades of Phosphatic and Potassic fertilizers to farmers at subsidized rates through manufacturers and importers. Subsidy amounts are directly disbursed to fertilizer companies, enabling them to supply fertilizers to farmers at controlled prices.

The government’s approval for Rabi 2025–26 reinforces its commitment to supporting farmers, promoting balanced soil nutrition, and stabilizing prices amid global market fluctuations. The move also aligns with the broader goal of agricultural self-reliance in India.

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