The Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Rabi season 2025-26, allocating ₹37,952.29 crore to keep fertiliser prices affordable for farmers. The decision, aimed at maintaining price stability and ensuring timely availability of essential inputs, will cover the period from October 1, 2025, to March 31, 2026.
The government’s decision comes amid rising global prices of fertiliser raw materials such as phosphorus and sulphur, which have led to increased input costs for Indian farmers. To cushion this impact, the base subsidy for phosphorus has been raised from ₹43.60 per kg during the Kharif season to ₹47.96 per kg for Rabi, while sulphur subsidy has been increased from ₹2.61 to ₹2.87 per kg. Subsidy rates for nitrogen and potassium remain unchanged at ₹43.02 per kg and ₹2.38 per kg respectively.
The approved subsidy will apply to several grades of P&K fertilisers, including Di-Ammonium Phosphate (DAP), NPK blends, and Single Super Phosphate (SSP). The subsidy on DAP, one of the most widely used fertilisers, has been increased by about seven percent to ₹29,805 per tonne, along with an additional special support of ₹3,500 per tonne, bringing the total subsidy to ₹33,305 per tonne. This measure will enable manufacturers and importers to sell fertilisers at controlled maximum retail prices and ensure farmers have access to affordable fertilisers before the start of the Rabi sowing season.
Officials said the step was essential to safeguard food security, particularly for major Rabi crops such as wheat, barley, and pulses, which depend heavily on adequate fertiliser application. The move also offers relief to the fertiliser industry, providing greater financial stability and predictability through assured subsidy flows. Analysts noted that the policy decision will help offset the effects of international price fluctuations and reduce the risk of cost shocks for farmers.
However, the large subsidy allocation raises fiscal concerns, given that the ₹38,000 crore package covers just one cropping season. Experts also point out that ensuring effective distribution of subsidised fertilisers, especially in remote regions, remains a challenge. Leakages, delays in subsidy disbursement, and dependence on imported raw materials continue to expose India to global market volatility.
In the long term, economists and agricultural experts have urged the government to complement subsidies with reforms that promote balanced fertiliser use, soil testing, and sustainable farming practices. They argue that over-reliance on subsidies could discourage the adoption of efficient nutrient management techniques and hinder the shift toward organic and bio-based alternatives.
The government has indicated that it will evaluate the effectiveness of its fertiliser subsidy schemes and may consider incorporating changes to enhance their impact and efficiency. For now, the increased subsidy rates for Rabi 2025-26 underline a strong policy commitment to supporting farmers and ensuring stable fertiliser availability ahead of the sowing season.