Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Rabi season 2025-26. The new subsidy rates will remain in effect from October 1, 2025, to March 31, 2026. This decision aims to ensure that farmers across the country continue to receive fertilizers at affordable prices, even as global input costs fluctuate.
According to the proposal cleared by the Cabinet, the tentative budgetary requirement for the upcoming Rabi season is around Rs 37,952.29 crore, approximately Rs 736 crore higher than the subsidy allocation for the Kharif season of 2025.
The revised subsidy will apply to key fertilizers such as Di-Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades, which are essential for crop productivity during the winter cropping season.
The NBS scheme, operational since April 2010, provides subsidies to fertilizer manufacturers and importers based on the nutrient content of fertilizers.
This ensures that farmers can access 28 grades of P&K fertilizers, including DAP, at reasonable rates. The government’s move to fix new subsidy rates for Rabi 2025-26 reflects its ongoing effort to balance fiscal responsibility with farmer welfare, particularly amid volatile international fertilizer prices.
Department of Fertilizers stated that the revised NBS rates have been determined keeping in mind recent trends in global prices of key raw materials such as urea, DAP, MOP, and sulphur. The government aims to maintain a stable supply chain and protect farmers from the impact of international market fluctuations.
