Rabi 2026-27 Fertiliser Subsidy: ₹62,370 Crore for P&K Fertilisers Under the NBS Scheme
The Union Cabinet approved the Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Rabi season 2026-27. The rates apply from 1 October 2026 to 31 March 2027.
The total subsidy for this season is about ₹62,370 crore. This is about ₹24,418 crore (roughly 64%) more than the ₹37,952.29 crore approved for Rabi 2025-26.
Under NBS, the subsidy is fixed per kilogram of each nutrient: nitrogen (N), phosphorus (P), potash (K) and sulphur (S). The rates cover 28 grades of P&K fertilisers, including DAP (Di-Ammonium Phosphate) and NPK mixes.
Reported per-kg rates: nitrogen about ₹94.21 (₹43.02 in Rabi 2025-26), phosphorus about ₹66.11 (₹47.96 earlier), sulphur about ₹10.42 (₹2.87 earlier) and potash unchanged at ₹2.38.
The government linked the large rise to higher world prices of fertilisers and raw materials, and to supply disruptions caused by the West Asia crisis. The aim is to keep fertilisers affordable for farmers during the main Rabi sowing season. Reports say the retail price of DAP stays at about ₹1,350 per 50 kg bag.
Urea is not part of this decision. Urea has its own subsidy system with a price fixed by the government.
Nutrient Based Subsidy (NBS) Scheme
The Nutrient Based Subsidy (NBS) Scheme is the system India uses to give subsidy on fertilisers other than urea, mainly phosphatic (P) and potassic (K) fertilisers like DAP and MOP (Muriate of Potash). The government fixes a subsidy amount for each kilogram of nutrient (N, P, K and S) present in a fertiliser. Companies get this subsidy and sell the fertiliser to farmers at a lower price. The full concept article explains its history, working and problems in detail.
The ₹62,370 crore package is simply the NBS scheme's per-nutrient rates being reset for the Rabi 2026-27 season. Because world prices of fertilisers and raw materials went up sharply, the government raised the per-kg subsidy, especially for nitrogen and phosphorus, so that farmers do not have to pay much more at the shop.
Urea Subsidy Scheme: How India Keeps Urea Cheap
Urea is the most used fertiliser in India and gives crops nitrogen. Unlike P&K fertilisers, urea is not under NBS. The government fixes a very low selling price for urea and pays the companies the gap between their cost and this price. This is why urea stays very cheap compared with DAP or MOP.
Today's ₹62,370 crore covers only P&K fertilisers under NBS, not urea. Students should remember this split: urea has a fixed price and a separate subsidy, while DAP, MOP and NPK mixes get a fixed per-nutrient subsidy under NBS.
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 proportion, based on what the soil lacks and what the crop needs. The best-known measure of this balance is the NPK ratio: how much nitrogen, phosphorus and potash farmers use compared with each other.
When P&K fertilisers become costly, farmers may cut DAP and potash and use even more cheap urea, making the soil less balanced. By raising the NBS subsidy, especially on phosphorus and sulphur, the government is trying to keep P&K fertilisers affordable so that balanced use does not suffer in the Rabi season.
- Rabi 2026-27 P&K subsidy: about ₹62,370 crore (1 October 2026 to 31 March 2027)
- Rabi 2025-26 P&K subsidy: ₹37,952.29 crore; increase of about ₹24,418 crore (about 64%)
- Rabi 2026-27 NBS rates (per kg): N about ₹94.21, P about ₹66.11, K ₹2.38, S about ₹10.42
- Kharif 2026 NBS subsidy: ₹41,534 crore (N ₹47.32, P ₹52.76, K ₹2.38, S ₹3.16 per kg)
- Grades covered: 28 P&K fertiliser grades, including DAP and NPK mixes
- NBS in force since: 1 April 2010; nodal body: Department of Fertilizers
- Urea MRP: ₹242 per 45 kg bag (outside NBS)
- DAP retail price reported at about ₹1,350 per 50 kg bag
- Ideal NPK use ratio commonly cited: 4:2:1