Cabinet Approves NBS Rates for Rabi 2026-27 on P&K Fertilizers

The Union Cabinet, chaired by Prime Minister Narendra Modi, on 11 November 2026 approved the Nutrient Based Subsidy (NBS) rates for the Rabi season of 2026-27 on phosphatic and potassic fertilizers. The rates apply from 01.10.2026 to 31.03.2027. The Ministry of Chemicals and Fertilizers administers the subsidy.

The money involved

The tentative budgetary requirement works out to roughly Rs 62,370.02 crore. That is about Rs 24,417.73 crore higher than what the same season needed a year earlier: the budget for Rabi 2025-26 stood at Rs 37,952.29 crore. The jump of nearly two-thirds reflects the course that international prices of fertilizers and of raw material have taken.

What NBS means

Under the Nutrient Based Subsidy regime the government pays a fixed subsidy per kilogram of nutrient, not per bag of fertilizer. Manufacturers and importers receive that amount at notified rates, which lets them sell the bag to the farmer at a price well below cost. The regime has governed the subsidy on phosphatic and potassic fertilizers since 01.04.2010.

Grades and coverage

At present the government makes 28 grades of phosphatic and potassic fertilizers available at subsidised prices, di-ammonium phosphate among them. The newly approved rates cover these grades, including the NPKS varieties, so that supply to the farmer stays smooth through the Rabi sowing and growing months.

Why the revision was needed

India imports a large share of its fertilizer and fertilizer raw material, so the prices of urea, di-ammonium phosphate, muriate of potash and sulphur in world markets feed straight into the subsidy bill. When those prices climb, either the retail price has to rise or the government has to absorb the difference. The Cabinet has chosen the second route and rationalised the per-nutrient rates in keeping with the recent price trend. The stated purpose is twofold: fertilizers must stay available to farmers at affordable and reasonable prices, and the subsidy must stay aligned to what inputs actually cost. For exam purposes, the Rabi season runs across the winter months, and fertilizer subsidy is among the largest single items in the central government's subsidy bill alongside food and fuel.