₹62,370 Crore Subsidy for P&K Fertilisers in Rabi 2026-27: How Nutrient Based Subsidy Keeps DAP Affordable
The Union Cabinet approved a subsidy of ₹62,370 crore on phosphatic and potassic (P&K) fertilisers for the rabi season 2026-27 (October 2026 to 31 March 2027).
The subsidy will be paid under the Nutrient Based Subsidy (NBS) Scheme, which is run by the Department of Fertilisers (Ministry of Chemicals and Fertilisers). The Cabinet approved the department's proposal to fix NBS rates for the season.
The government said world fertiliser prices have risen sharply because of the West Asia crisis and the Russia-Ukraine war. A larger subsidy means farmers do not have to pay these higher prices.
The price of DAP (di-ammonium phosphate) for farmers stays the same at ₹1,350 per 50 kg bag.
The subsidy covers DAP and the many NPKS grades (mixed fertilisers that contain nitrogen, phosphorus, potash and sulphur), so these soil nutrients stay available at affordable prices.
For comparison, the P&K subsidy for the previous season, Kharif 2026 (April to September 2026), was ₹41,534 crore.
Nutrient Based Subsidy (NBS) Scheme
The Nutrient Based Subsidy (NBS) Scheme is how the government gives subsidy on fertilisers other than urea, mainly phosphatic (P) and potassic (K) fertilisers such as DAP and MOP. The government fixes a subsidy for every kilogram of nutrient (nitrogen, phosphorus, potash and sulphur) inside a fertiliser. Companies get this fixed amount per tonne sold, and the rest of the price is paid by the farmer. Rates are announced twice a year, once for kharif and once for rabi.
The Cabinet's approval of ₹62,370 crore is the routine half-yearly NBS decision, but much bigger than usual because imported phosphate and potash have become costly. By raising the per-kg nutrient subsidy, the government absorbs the price shock so the farmer price of DAP stays at ₹1,350 a bag.
Urea Subsidy Scheme: How India Keeps Urea Cheap
Urea is India's most used fertiliser and gives plants nitrogen. Unlike P&K fertilisers, urea is not under NBS. The government fixes its selling price by law and pays companies the full gap between their cost and this low price. Because urea is so cheap compared to DAP and MOP, farmers tend to use too much of it.
The rabi decision covers only P&K fertilisers; urea is handled separately. The two-track system (fixed-price urea, nutrient-based P&K) is the main reason India's soil nutrient balance is skewed towards nitrogen, which is the subject of the next bridge.
Balanced Fertilisation and the NPK Ratio
Plants need many nutrients from the soil, just as people need a mix of foods. Balanced fertilisation means giving the soil the right nutrients, in the right amounts and the right proportion, based on what the soil lacks and what the crop needs. The best-known measure of balance is the NPK ratio: how much nitrogen (N), phosphorus (P) and potassium (K) farmers use compared to each other. For Indian conditions, the commonly accepted ideal for the country as a whole is about 4:2:1, but India actually uses far more nitrogen than this.
The big rabi subsidy keeps DAP and NPK grades affordable at a time when world prices are high. This matters for balance: if P&K fertilisers become too costly, farmers cut them and use even more cheap urea, making the NPK ratio worse. Keeping DAP at ₹1,350 a bag helps hold the nutrient mix closer to what rabi crops like wheat and mustard need.
- P&K subsidy for Rabi 2026-27: ₹62,370 crore (season: October 2026 to 31 March 2027)
- Approved by the Union Cabinet on 11 November 2026, on a proposal of the Department of Fertilisers
- DAP farmer price: unchanged at ₹1,350 per 50 kg bag
- Kharif 2026 P&K subsidy: ₹41,534 crore
- Reasons for higher cost cited: West Asia crisis and Russia-Ukraine war
- NBS in force since 1 April 2010; covers N, P, K and S; urea is outside NBS
- Urea MRP: ₹242 per 45 kg bag
- India's import dependence: nearly 100% for MOP (potash), about half for DAP