SDG 2: Zero Hunger | SDG 12: Responsible Consumption and Production | SDG 15: Life on Land
Ministry of Chemicals and Fertilizers | Department of Fertilizers | Ministry of Agriculture & Farmers Welfare
On January 5, 2026, the Union Cabinet approved the Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Rabi 2025-26 season (October 2025 to March 2026). This move ensures the availability of essential crop nutrients to farmers at subsidized and affordable prices during the peak sowing season for wheat and mustard.
Key features of the subsidy announcement include:
Fixed Subsidy Rates: The government has fixed per-kilogram subsidy rates for nitrogen (N), phosphate (P), potash (K), and sulphur (S).
Budgetary Outlay: An estimated expenditure of ₹24,475 crore has been earmarked for the current Rabi season to insulate farmers from the volatility of international fertilizer prices.
Balanced Fertilization: The NBS regime aims to move away from urea-heavy fertilization by incentivizing the use of complex P&K fertilizers, which helps maintain the N:P:K balance in the soil.
Fortified Fertilizers: Special additional subsidies continue for fertilizers fortified with micro-nutrients like Zinc and Boron, which are critical for addressing widespread soil deficiencies in India.
Price Stability: Fertilizer companies are mandated to sell products at the Pre-determined Maximum Retail Price (MRP), with the government bridging the gap between the cost of production/import and the subsidized price.
What is the Nutrient-Based Subsidy (NBS) Scheme? Launched in 2010, NBS is a policy where the government fixes an annual/bi-annual subsidy for each nutrient (N, P, K, S) rather than for the specific fertilizer product. Unlike Urea, where the MRP is fixed and the subsidy is variable, under NBS, the subsidy is fixed and the MRP is theoretically market-linked, though the government monitors it closely to ensure affordability and balanced soil nutrition.
Policy Relevance
The NBS announcement is vital for India’s food security and the long-term sustainability of its agricultural land. By subsidizing P&K fertilizers, the government prevents soil degradation caused by the over-application of cheaper Urea, which is a major environmental concern in the Indo-Gangetic plains.
Strategic Impact for India:
Soil Health Management: Aligned with the Soil Health Card Scheme, the NBS rates encourage farmers to apply only those nutrients that their land specifically lacks.
Import Resilience: As India remains heavily dependent on imports for Phosphatic and Potassic raw materials, the NBS framework provides a buffer against global supply chain disruptions caused by geopolitical tensions.
Efficiency in Subsidy Delivery: The use of the Direct Benefit Transfer (DBT) system in fertilizers ensures that subsidies reach the point of sale (PoS) and prevents the diversion of subsidized nutrients for industrial use.
Relevant Question for Policy Stakeholders: How can the government calibrate the NBS rates to create a ‘level playing field’ for bio-fertilizers and organic inputs, ensuring that the heavy subsidies on chemical P&K do not inadvertently discourage the transition toward Natural Farming methods?
Follow the full news here: Nutrient-Based Subsidy for Rabi 2025-26