Nutrient Based Subsidy (NBS) Scheme
The Nutrient Based Subsidy (NBS) scheme, implemented from April 1, 2010, provides a fixed annual per-kilogram subsidy on Phosphatic and Potassic (P&K) fertilizers based on their nutrient content (N, P, K, S). Under NBS, the MRP (Maximum Retail Price) of P&K fertilizers is decontrolled — companies can fix prices at reasonable levels, monitored by the government. Urea, however, remains under price control at a fixed MRP of ₹242 per 45 kg bag (since 2018). The government pays the difference between the cost of delivery and the MRP as a subsidy to manufacturers and importers.
- NBS covers: DAP (Di-ammonium phosphate), MOP (Muriate of Potash), NPK complexes, SSP (Single Super Phosphate), and other P&K fertilizers.
- Urea MRP: ₹242 per 45 kg bag — unchanged since 2018, heavily subsidised.
- NBS subsidy outlay for Kharif 2025 season: ₹37,216 crore (approved by Cabinet March 2025).
- Special package: A one-time additional subsidy of ₹3,500/tonne on DAP was extended through April 2024–March 2025 to keep prices affordable amid global supply disruptions.
- India's total fertilizer subsidy bill: approximately ₹1.64 lakh crore in FY2022-23 (peak due to global price spike); normalised to approximately ₹1.64 lakh crore in FY2024-25.
● Tracked since February 16, 2026 · last seen August 31, 2026 · updates as the daily brief publishes
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