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Nutrient-Based Subsidy (NBS) Scheme

The Nutrient-Based Subsidy (NBS) Scheme was introduced in 2010 to rationalise fertiliser subsidies by fixing a per-nutrient subsidy rate (per kg of N, P, K, S) instead of subsidising specific fertiliser products. It applies to phosphatic and potassic (P&K) fertilisers. Urea remains outside the NBS framework and is price-controlled separately.

Key details
  • NBS Scheme: launched April 1, 2010 by the Department of Fertilizers, Ministry of Chemicals and Fertilizers
  • NBS covers: DAP, MOP, SSP, complex fertilisers — all non-urea P&K fertilisers
  • Urea: Not under NBS; MRP is fixed by the government; subsidised through a separate urea subsidy mechanism
  • NBS Kharif 2025 outlay: ₹37,216.15 crore (approved by Cabinet)
  • Phosphorus subsidy increased sharply — from ₹30,800/MT to ₹43,600/MT (41% jump) for Kharif 2025
  • The Cabinet approves NBS rates biannually (Kharif: April–September; Rabi: October–March)
  • Criticism of NBS: Incentivises overuse of specific nutrients where subsidy is high; does not curb consumption, only shifts subsidy mechanism
In the news

Tracked since February 01, 2026 · last seen June 15, 2026 · updates as the daily brief publishes

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