In a significant move to support the agricultural sector, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an outlay of ₹37,952 crore for nutrient-based subsidies (NBS) on phosphatic and potassic (P&K) fertilizers for the Rabi season (October to March). This allocation represents an increase of approximately ₹14,000 crore compared to the previous Rabi season.
The decision includes an enhanced subsidy rate for phosphate, moving from ₹43.60 per kg during the Kharif season to ₹47.96 per kg for the Rabi season. The subsidy for sulfur has also seen an increase, rising from ₹1.77 per kg to ₹2.87 per kg. Meanwhile, the subsidy rates for nitrogen and potash will remain unchanged at ₹43.02 per kg and ₹2.38 per kg, respectively.
Information and Broadcasting Minister Ashwini Vaishnaw highlighted that this package provides considerable relief to farmers, ensuring no further increase in fertilizer prices for them. He stated, “Prime Minister Narendra Modi takes big decisions one after the other in favour of farmers… This will not only ensure affordable fertilizers for farmers but will also increase their income.”
The subsidy adjustments are based on international price trends of key fertilizer inputs like urea, di-ammonium phosphate (DAP), muriate of potash (MOP), and sulfur, along with prevailing exchange rates and domestic market conditions. The Nutrient-Based Subsidy regime, in place since 2010, covers 28 grades of P&K fertilizers and provides subsidies on a per-nutrient basis to fertilizer companies, enabling them to sell at subsidized rates.
Additionally, a special package ensures the continued availability of DAP and triple super phosphate (TSP) without any price hikes. Subsidized rates will also apply to ammonium sulphate, both domestically produced and imported, to supplement urea availability.