Cabinet Approves ₹38,000 Crore Fertiliser Subsidy as Favourable Monsoon Boosts Kharif
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Institutions: Ministry of Agriculture & Farmers Welfare
The Union Cabinet approved the proposal to fix the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the upcoming Rabi Season 2025-26 (October 1, 2025, to March 31, 2026). The tentative budgetary requirement for this subsidy stands at approximately ₹37,952.29 crore. This critical fiscal support aims to ensure the smooth availability of fertilizers—including Di Ammonium Phosphate (DAP)—to farmers at affordable prices, mitigating the impact of recent trends in international prices of fertilizers and inputs.
The subsidy decision comes as the agricultural sector displays strong underlying health. During a review meeting, the Union Agriculture Minister confirmed that Kharif 2025 sowing has been highly satisfactory, with total sown areas for paddy, oilseeds, and pulses all recording strong coverage. This progress is largely supported by:
Favourable Monsoon Conditions: The country has benefited from adequate rainfall and efficient planning.
High Water Levels: The total live storage in 161 major reservoirs across India is stable, sitting at 104.30% of last year’s level and 115.95% of the ten-year average, which ensures irrigation needs are well met for Kharif and will support the upcoming Rabi sowing.
The government has committed to coordinating with states to provide necessary support to promote greater sowing and record productivity of pulses and oilseeds in the Rabi season, bolstering national nutritional security.
The Cabinet’s fiscal allocation of nearly ₹38,000 crore for the Rabi season, combined with favorable monsoon and water data, provides a strong foundation for food security and inflation management. The policy ensures both financial assurance (through a stable subsidy) and environmental assurance (through healthy reservoir levels), creating optimal conditions for the upcoming Rabi harvest.
What is the Nutrient Based Subsidy (NBS) Scheme?→ The NBS Scheme is the government’s program for subsidizing Phosphatic and Potassic (P&K) fertilizers. Under this scheme, the government fixes a certain amount of subsidy per nutrient (Nitrogen, Phosphorus, Potash, and Sulphur). This allows manufacturers and importers to sell the fertilizers to farmers at a low, subsidized retail price, with the subsidy amount being reimbursed by the government.
Relevant Question for Policy Stakeholders: Beyond financial subsidies, what policy and technological interventions are being planned to reduce the agriculture sector’s structural reliance on imported fertilizer components whose prices are subject to global volatility?
Follow the full news here: Cabinet approves the Nutrient Based Subsidy rates for Rabi 2025-26 on Phosphatic and Potassic fertilizers | Union Agriculture Minister Shri Shivraj Singh Chouhan reviews progress in the agriculture sector