Centre Approves Rs 62,370 Crore Fertiliser Subsidy for Rabi 2026-27; Allocation Rises 64 pc

Centre Approves Rs 62,370 Crore Fertiliser Subsidy for Rabi 2026-27; Allocation Rises 64 pc

New Delhi, Nov 13: The Union Government has approved a fertiliser subsidy outlay of approximately ₹62,370.02 crore for the Rabi 2026-27 season, marking an increase of more than 64 per cent over the previous year’s allocation. The enhanced support aims to ensure the availability of phosphatic and potassic (P&K) fertilisers at affordable prices while encouraging balanced nutrient use among farmers.

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The Nutrient-Based Subsidy (NBS) rates for Rabi 2026-27 were approved on November 11, with the revised rates applicable retrospectively from October 1, 2026, to March 31, 2027.

The allocation compares with ₹37,952.29 crore provided for the Rabi 2025-26 season. The revised support takes into account international prices of fertilisers and their key inputs.

Nutrient-based subsidy rates announced for Rabi season

Under the Nutrient-Based Subsidy Scheme, the government provides financial support to fertiliser companies based on the nutrient content of notified fertilisers. The system covers four major nutrients — Nitrogen (N), Phosphorus (P), Potassium (K) and Sulphur (S).

The approved subsidy rates for Rabi 2026-27 are:

Introduced on April 1, 2010, the NBS Scheme aims to promote the appropriate use of fertilisers by linking subsidies to their nutrient composition. Rates are revised twice a year for the Kharif and Rabi seasons and cover 28 grades of P&K fertilisers.

The scheme is intended to help farmers access essential nutrients at reasonable prices and encourage fertiliser application according to soil conditions and crop requirements.

Special support continued for key fertilisers

Alongside the revised NBS rates, the government has retained several special measures to maintain the supply of important fertilisers and support domestic production.

The special provision for Di-Ammonium Phosphate (DAP) will continue to ensure its availability at a fixed price of ₹1,350 per bag, over and above the regular NBS subsidy. Similar support has been extended to imported and domestically produced Triple Superphosphate (TSP), as well as imported Monoammonium Phosphate (MAP).

Freight subsidy for Single Superphosphate (SSP) will also continue during the Rabi season. The measure is aimed at making SSP a more accessible alternative to DAP.

The subsidy on imported and domestically manufactured Ammonium Sulphate has likewise been retained for the season.

Sulphur package to support domestic manufacturers

The government has also continued the Sulphur package, which provides assistance exclusively to domestic manufacturers of sulphur and sulphuric acid.

Under the arrangement, manufacturers of sulphur will receive support equivalent to 20 per cent of the actual procurement cost, subject to a floor price of USD 800 per tonne. For sulphuric acid, the assistance will be 20 per cent of the actual procurement cost, with a floor price of USD 266.67 per tonne.

These provisions are intended to strengthen domestic production and support the availability of essential inputs for fertiliser manufacturing.

Fertiliser subsidy disbursement crosses ₹2.79 lakh crore

The scale of government support under the NBS Scheme is reflected in the subsidy disbursement figures. Between 2022-23 and 2025-26, more than ₹2.79 lakh crore was released for indigenous and imported P&K fertilisers.

The government has also reported a rise in the country’s overall stock of major fertilisers. Total availability increased from 173.46 lakh tonnes on November 10, 2025, to 235.21 lakh tonnes on November 10, 2026 — a growth of around 35.6 per cent.

The latest stock position across major fertiliser categories is as follows:

The figures indicate higher stocks of urea, DAP, NPK fertilisers and MOP compared with the corresponding date last year, while SSP stocks recorded a marginal decline.

NBS Scheme focuses on balanced fertilisation and farm sustainability

The Nutrient-Based Subsidy framework is designed not only to make fertilisers affordable but also to encourage their judicious application. By linking assistance to nutrient content, the scheme seeks to promote a more balanced use of nitrogen, phosphorus, potassium and sulphur.

The continuation of special support for DAP, SSP, ammonium sulphate and other fertiliser inputs is also intended to widen farmers’ choices and strengthen domestic manufacturing.

With a higher subsidy allocation, continued price support for key fertilisers and improved overall stock availability, the Rabi 2026-27 measures seek to provide greater stability in agricultural input supplies and support farmers through the winter cropping season.