New Delhi, Nov 11 (KNS): In a major decision aimed at easing the financial burden on farmers and ensuring the availability of fertilizers at affordable prices, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Rabi 2026-27 season, with an estimated budgetary requirement of Rs 62,370.02 crore.

The approved subsidy will cover the period from October 1, 2026, to March 31, 2027, and will apply to various P&K fertilizers, including Di-Ammonium Phosphate (DAP) and NPKS grades, which are widely used by farmers for crop production.

According to an official statement, the estimated subsidy requirement for the upcoming Rabi season is Rs 24,417.73 crore higher than the Rs 37,952.29 crore allocated for the corresponding season in 2025-26.

The substantial increase in the subsidy requirement comes amid fluctuations in international fertilizer and raw material prices, prompting the government to revise the subsidy framework to maintain affordable fertilizer supplies for farmers.

The Cabinet decision is expected to help farmers access essential fertilizers at reasonable prices while ensuring their smooth availability during the crucial Rabi cropping season.

Under the approved framework, subsidies will be provided to fertilizer manufacturers and importers based on the notified NBS rates, enabling them to supply fertilizers to farmers at subsidized prices.Click Here To Follow Our WhatsApp Channel

The government said the decision takes into account recent trends in international prices of fertilizers and key inputs, including urea, DAP, Muriate of Potash (MOP) and sulphur.

Officials said the rationalisation of subsidy rates is intended to balance changes in global fertilizer prices with the need to protect farmers from excessive input costs.

At present, the Centre makes available 28 grades of P&K fertilizers, including DAP, at subsidized prices through fertilizer manufacturers and importers.

The Nutrient Based Subsidy scheme, introduced on April 1, 2010, provides financial support for P&K fertilizers, with subsidy rates determined according to their nutrient content.

The government reiterated its commitment to ensuring that farmers continue to receive essential fertilizers at affordable prices, irrespective of fluctuations in international markets.

The revised subsidy rates will remain applicable throughout the Rabi 2026-27 season, covering the six-month period ending March 31, 2027.

The Cabinet approval is aimed at maintaining fertilizer availability, supporting agricultural activities and reducing the impact of rising input costs on farmers during the winter cropping season. (KNS)