India: Cabinet Approves Nutrient-Based Subsidy Rates for Rabi 2025-26 on Phosphatic and Potassic Fertilizers
29 October 2025, New Delhi: The Union Cabinet has approved the proposal of the Department of Fertilizers to fix the Nutrient Based Subsidy (NBS) rates for Rabi 2025-26 on Phosphatic and Potassic (P&K) fertilizers. The approval covers fertilizers such as Di-Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades, ensuring their smooth availability to farmers at affordable prices during the upcoming Rabi season.
The subsidy rates will apply from October 1, 2025, to March 31, 2026, with a tentative budgetary requirement of ₹37,952.29 crore, which is about ₹736 crore higher than the budgetary requirement for the Kharif 2025 season.
| Season | Period | Type of Fertilizer | Estimated Budgetary Requirement (₹ crore) | Change Compared to Previous Season |
|---|---|---|---|---|
| Kharif 2025 | April – September 2025 | Phosphatic & Potassic (P&K) | 37,216.29 | – |
| Rabi 2025-26 | October 2025 – March 2026 | Phosphatic & Potassic (P&K) | 37,952.29 | +736.00 |
The decision will help maintain stability in fertilizer prices and ensure adequate supply to farmers during the sowing period. The government aims to provide fertilizers at subsidized, reasonable, and accessible rates to support farmers’ input needs while aligning subsidy levels with recent international price movements of fertilizers and key raw materials such as urea, DAP, MOP, and sulphur.
The Nutrient Based Subsidy (NBS) Scheme, implemented since April 2010, governs subsidies on 28 grades of P&K fertilizers, including DAP. Under the scheme, subsidies are provided to fertilizer manufacturers and importers based on the nutrient content of each grade. This allows flexibility in pricing while ensuring that farmers continue to access fertilizers at affordable and stable rates.
By approving the NBS rates for Rabi 2025-26, the government continues its policy of protecting farmers from global price volatility and promoting balanced fertilizer use. The rationalization of subsidies is expected to contribute to sustainable nutrient management, improve soil health, and support agricultural productivity in the Rabi season.
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