New Delhi, October 28, 2025:
The Union Cabinet, chaired by the Honorable Prime Minister Shri Narendra Modi, has approved the Nutrient Based Subsidy (NBS) rates on phosphatic and potassic (P&K) fertilizers for Rabi 2025-26. This will ensure affordable fertilizer access for farmers in the upcoming Rabi season.
The approved subsidy, amounting to ₹37,952.29 crore, is approximately ₹736 crore more than the budget for the Kharif 2025 season. This decision will help stabilize fertilizer prices and protect farmers from fluctuations in the global market.
Key Highlights of the Decision: Nutrient Based Subsidy
1 – Subsidy coverage: NBS rates apply to all phosphatic and potassic (P&K) fertilizers, including di-ammonium phosphate (DAP) and NPKS (nitrogen, phosphorus, potash, sulfur) grades.
2 – Effective period: The new rates will be applicable from October 1, 2025, to March 31, 2026.
3 – Objective: To maintain a steady supply of fertilizers at reasonable prices to Indian farmers during the Rabi crop season.
Benefits to Farmers: Nutrient Based Subsidy
1 – The approval of NBS is expected to benefit millions of farmers across India directly:
2 – Affordable Fertilizer Access: This ensures that P&K fertilizers are available at subsidized rates, reducing the financial burden on farmers.
3 – Stable Prices: Prevents price fluctuations due to international market fluctuations in fertilizer and raw material prices.
4 – Balanced Nutrient Use: Promotes balanced nutrient use essential for soil health and higher yields.
Background of the NBS Scheme
The Nutrient Based Subsidy (NBS) Scheme, which began on April 1, 2010, controls the distribution and pricing of 28 grades of P&K fertilizers, including DAP. Under this scheme, the government provides subsidies to fertilizer manufacturers and importers based on approved nutrient content and global price trends.
Subsidies are credited directly to fertilizer companies, ensuring that the benefits reach farmers through lower retail prices. This system allows for transparent and efficient fertilizer distribution across the country.
Government’s Continued Support for Agriculture
With this approval, the government reaffirms its commitment to supporting the agricultural sector. Despite global fluctuations in prices of Urea, DAP, MOP (Muriate of Potash), and Sulfur, India’s fertilizer policy remains focused on ensuring availability, affordability, and sustainability.
Conclusion
The approval of the Nutrient-Based Subsidy for Rabi 2025-26 marks another step toward empowering India’s farmers and stabilizing input costs in the agricultural sector. By allocating nearly ₹38,000 crore, the government aims to ensure that no farmer faces fertilizer shortages or unaffordable prices during the crucial Rabi season.