India Cabinet Approves Rs. 62,370 Crore Fertilizer Subsidy for Rabi 2026-27
The approved Nutrient Based Subsidy (NBS) rates will apply to phosphatic and potassic (P&K) fertilizers, including DAP and NPKS grades, from October 1, 2026, to March 31, 2027.
12 November 2026, New Delhi, IN: The 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 2026-27 season, covering the period from October 1, 2026, to March 31, 2027.
The tentative budgetary requirement for the six-month period has been estimated at Rs. 62,370.02 crore, an increase of Rs. 24,417.73 crore compared with the Rs. 37,952.29 crore allocated for the Rabi 2025-26 season.
The approved subsidy rates will apply to P&K fertilizers, including Di-Ammonium Phosphate (DAP) and NPKS grades. The subsidy will be provided to fertilizer manufacturers and importers in accordance with the notified rates to support the availability of fertilizers to farmers at subsidised prices.
The government stated that the revised rates take into account recent trends in international prices of fertilizers and key inputs, including urea, DAP, Muriate of Potash (MOP) and sulphur. The revision is intended to rationalise subsidy support while ensuring that P&K fertilizers remain available to farmers at affordable prices.
Under the existing NBS framework, the government makes 28 grades of P&K fertilizers, including DAP, available to farmers at subsidised prices through fertilizer manufacturers and importers.
The Nutrient Based Subsidy Scheme has been in operation since April 1, 2010. Under the scheme, subsidies are determined based on the nutrient content of fertilizers, with the government notifying subsidy rates for different nutrients.
The approval covers the entire Rabi 2026-27 season, with the revised subsidy rates applicable from October 1, 2026, to March 31, 2027.
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