Fertiliser Subsidy
Policy Architecture
India's fertiliser subsidy regime is one of the largest components of the government's non-Plan expenditure. The Nutrient Based Subsidy (NBS) scheme (for P&K fertilisers) and statutory price controls (for urea, under the Urea Policy 2015) together cost the exchequer ₹1.5–2 lakh crore annually.
- Urea: Maximum Retail Price (MRP) is statutorily fixed; government pays producers the difference between cost and MRP as subsidy — fully pass-through, not NBS-linked
- NBS (Nutrient Based Subsidy): Fixed per-kg subsidy for nutrients (N, P, K, S) in non-urea fertilisers; manufacturers free to set MRP above subsidy-adjusted cost
- CACP (Commission for Agricultural Costs and Prices) advises on fertiliser pricing impacts on farmers but does not directly recommend fertiliser subsidy rates — that is a Ministry of Chemicals and Fertilisers function
- Global urea/DAP prices spiked due to the Russia-Ukraine war (2022) and subsequent supply disruptions from West Asia (2026), necessitating supplementary allocations
● Tracked since March 10, 2026 · last seen September 14, 2026 · updates as the daily brief publishes
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