Cabinet Approves ₹62,370 Crore Rabi Fertiliser Subsidy: New NBS Rates and What They Mean for Farmers
The Union Cabinet approved a subsidy of ₹62,370 crore on phosphatic and potassic (P&K) fertilisers for the rabi season 2026-27. The new rates apply from 1 October 2026 to 31 March 2027.
The subsidy is given under the Nutrient Based Subsidy (NBS) Scheme. The new per-kg rates are: nitrogen ₹94.21, phosphorus ₹66.11, potash ₹2.38 and sulphur ₹10.42.
The outlay is ₹24,418 crore more than the ₹37,952 crore given for the previous rabi season (rabi 2025-26), a rise of about 64%.
DAP (di-ammonium phosphate) will stay available to farmers at ₹1,350 per 50 kg bag, through a special provision paid on top of the normal NBS subsidy.
The government said world prices of fertilisers and raw materials (DAP, muriate of potash and sulphur) have jumped because of the West Asia crisis and the Russia-Ukraine war. The higher subsidy keeps farm input costs steady as farmers sow wheat, pulses and oilseeds.
The Centre makes 28 grades of P&K fertilisers, including DAP, available at subsidised prices through manufacturers and importers.
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. The government fixes a subsidy for each kilogram of nutrient (nitrogen, phosphorus, potash and sulphur) inside a fertiliser. A company gets this fixed amount for every tonne it sells, and the farmer pays the rest of the price. The rates are fixed twice a year, once for the kharif season and once for the rabi season.
The Cabinet's decision is the routine half-yearly NBS rate-fixing, but far bigger than usual. World prices of phosphate, potash and sulphur have risen sharply, so the government raised the per-kg nutrient subsidy to absorb the shock and keep DAP at ₹1,350 a bag.
Urea Subsidy Scheme: How India Keeps Urea Cheap
Urea is India's most used fertiliser. It gives plants nitrogen, the nutrient that makes leaves green and helps fast growth. Unlike P&K fertilisers, urea is not under NBS. The government fixes its selling price and pays companies the gap between their cost and this low price.
The rabi decision covers only P&K fertilisers; urea is paid for under its own scheme. Raising the P&K subsidy narrows the price gap between urea and other fertilisers, which matters for balanced use of nutrients.
Balanced Fertilisation and the NPK Ratio
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 this balance is the NPK ratio: how much nitrogen (N), phosphorus (P) and potassium (K) farmers use compared to one another. For India as a whole, the commonly accepted ideal is about 4:2:1. India actually uses much more nitrogen than this, mainly because urea is so cheap.
The large rise in the sulphur rate (from ₹2.87 to ₹10.42 per kg) and the phosphorus rate makes sulphur-bearing and phosphatic fertilisers more affordable. This supports more balanced use of nutrients during the rabi sowing of wheat, pulses and oilseeds.
- Rabi 2026-27 P&K subsidy: ₹62,370 crore, for 1 October 2026 to 31 March 2027
- Increase: ₹24,418 crore over Rabi 2025-26 (₹37,952 crore), about 64%
- New NBS rates per kg: N ₹94.21 · P ₹66.11 · K ₹2.38 · S ₹10.42
- Rabi 2025-26 rates per kg: N ₹43.02 · P ₹47.96 · K ₹2.38 · S ₹2.87
- Kharif 2026 P&K subsidy: ₹41,534 crore
- DAP farmer price: ₹1,350 per 50 kg bag (special provision on top of NBS)
- Grades of P&K fertilisers covered: 28
- NBS in force since 1 April 2010; Department of Fertilizers, Ministry of Chemicals and Fertilizers
- Urea MRP: ₹242 per 45 kg bag (excluding neem coating and taxes), unchanged since 1 March 2018
- Ideal NPK ratio: 4:2:1