Cabinet Approves Rs 37,216 Crore Subsidy for P&K Fertilizers in Kharif Season
A subsidy of ₹37,216.15 crore will be provided for the Kharif 2025 season, which is approximately ₹13,000 crore more than the subsidy granted for the Rabi 2024-25 season. This subsidy aims to ensure the availability of affordable and reasonably priced fertilizers for farmers.
Join the RuralVoice whatsapp group
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Department of Fertilizers' proposal to fix the Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Kharif season of 2025. These rates will be applicable from April 1 to September 30, 2025. This information was shared in a government press release.
According to the government press release, a subsidy of ₹37,216.15 crore will be provided for the Kharif 2025 season, which is approximately ₹13,000 crore more than the subsidy granted for the Rabi 2024-25 season. This subsidy aims to ensure the availability of affordable and reasonably priced fertilizers for farmers. Considering recent trends in international prices of fertilizers and inputs, the subsidy on P&K fertilizers will be rationalized accordingly.
Additionally, the freight subsidy for Single Super Phosphate (SSP) has been extended until Kharif 2025.
The subsidy on P&K fertilizers, including NPKS grades, will be provided based on the approved rates for Kharif 2025 (April 1, 2025 – September 30, 2025) to ensure smooth availability at affordable prices for farmers.
The government provides 28 grades of P&K fertilizers to farmers at subsidized rates through manufacturers and importers. The NBS scheme has been in place since April 1, 2010, ensuring the availability of P&K fertilizers at affordable prices. Given recent trends in international prices of fertilizers and key inputs like urea, DAP, MOP, and sulfur, the government has decided to approve the NBS rates for P&K fertilizers, including NPKS grades, for the Kharif 2025 season (April 1, 2025 – September 30, 2025). Fertilizer companies will be provided subsidies as per the approved and notified rates to make fertilizers available to farmers at lower prices.
P&K fertilizers are categorized as decontrolled fertilizers, with Diammonium Phosphate (DAP) being the most consumed among them. DAP is the second most widely used fertilizer in India after urea, and a significant portion of its raw materials and finished products are imported.
Under the NBS scheme, subsidies are provided per kilogram of Nitrogen (N), Phosphate (P), Potash (K), and Sulfur (S). However, the government has not yet issued a notification on the specific subsidy rates for N, P, K, and S. This notification is typically issued by the Department of Fertilizers under the Ministry of Chemicals and Fertilizers. In recent times, the industry has not shown much interest in DAP imports, as importers have been incurring losses despite government subsidies and special incentives. The Cabinet-approved subsidy amount is higher than that of the Rabi season.
