In a move aimed at supporting farmers amid global challenges, the Union Cabinet, led by Prime Minister Narendra Modi, approved increased subsidies for phosphatic and potassic (P&K) fertilisers like Di-Ammonium Phosphate (DAP) and NPKS grades. The decision was announced on Wednesday, setting a budgetary requirement of Rs 62,370.02 crore for the Rabi 2026-27 season, which is approximately Rs 24,417.73 crore higher than the previous season's budget. This allocation is expected to ensure that farmers continue to receive essential fertilisers at subsidised and affordable prices, despite fluctuations in international fertiliser costs. In a post on X, Modi emphasized that farmers remain a top priority for the government, stating that efforts are being made to ease their burden under difficult global conditions.
The approved arrangement will provide subsidies to fertiliser companies for P&K fertilisers according to the notified rates for the Rabi 2026-27 season. The move aims to ensure smooth availability of these fertilisers to farmers at affordable prices and rationalize subsidies in view of recent trends in international prices of fertilisers and key inputs. The subsidy will be extended to fertiliser manufacturers and importers, enabling them to make the products available to farmers at subsidised rates.
The Nutrient Based Subsidy (NBS) scheme, which has been in effect since April 1, 2010, currently makes 28 grades of P&K fertilisers, including DAP, available to farmers at subsidised prices through fertiliser manufacturers and importers. The revised rates under the NBS system will help maintain the availability of P&K fertilisers during the Rabi season while taking into account movements in global input costs. The subsidy is intended to provide farmers with access to essential agricultural nutrients at reasonable prices during the sowing season.