India's Fertiliser Subsidy Architecture
India operates a dual-track fertiliser subsidy system: a fixed Maximum Retail Price (MRP) system for urea, and a Nutrient Based Subsidy (NBS) scheme for phosphatic and potassic (P&K) fertilisers. In both cases, subsidies currently flow to manufacturers and importers, who sell to farmers at controlled or subsidised prices; the government then reimburses the companies.
- Urea (most used fertiliser): Price controlled by government; current MRP is approximately Rs 242/45-kg bag (heavily subsidised); manufacturers reimbursed by Department of Fertilizers, Ministry of Chemicals and Fertilizers
- NBS Scheme (launched April 2010): Fixed subsidy per kg of nutrient (N, P, K, S) paid to manufacturers of 28 grades of P&K fertilisers; companies can price these at market rates above the subsidy baseline
- DBT in fertilisers (since 2018): A partial DBT is already operational — the subsidy is released to manufacturers only after verified retail sales to farmers using their Aadhaar-linked Point of Sale (PoS) machines at retail outlets
- Annual fertiliser subsidy: Approximately Rs 1.7-1.9 lakh crore (varies year to year based on international prices)
- Nodal Ministry: Department of Fertilizers, Ministry of Chemicals and Fertilizers
● Tracked since February 25, 2026 · last seen June 15, 2026 · updates as the daily brief publishes
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