The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved a subsidy outlay of ₹41,534 crore for phosphatic and potassic (P&K) fertilisers for the upcoming kharif 2026 season.
The allocation marks an increase of around 12% compared to the previous year, with an additional ₹4,317 crore over the kharif 2025 subsidy. The revised rates will remain in effect from April 1 to September 30, 2026.
Updated Nutrient Subsidy Rates
For the kharif 2026 cycle, the government has revised subsidy rates for key nutrients:
- Nitrogen: ₹47.32 per kg
- Phosphate: ₹52.76 per kg
- Sulphur: ₹3.16 per kg
- Potash: ₹2.38 per kg (unchanged)
Compared to the previous rabi season, subsidies for nitrogen, phosphate, and sulphur have been increased, indicating higher support for these nutrients, while potash rates remain stable.
Framework Under Nutrient-Based Subsidy Scheme
The subsidy is provided under the Nutrient Based Subsidy Scheme (NBS), which has been operational since April 2010. The scheme covers 28 different grades of P&K fertilisers and links subsidy disbursement to the nutrient composition of fertilisers.
Under this system, the retail prices of non-urea fertilisers—such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP), and NPK blends—are determined by manufacturers, while the government provides a fixed subsidy component to make them more affordable for farmers.
Importance for Kharif Season
The kharif sowing cycle typically begins with the arrival of the southwest monsoon in June, making timely availability of fertilisers crucial for agricultural productivity.
The subsidy framework is aimed at ensuring adequate supply and price stability during this peak demand period, supporting farmers across the country.
Broader Fertiliser Subsidy Outlook
For FY 2026–27, the total fertiliser subsidy allocation—including both urea and nutrient-based subsidies—is estimated at ₹1,70,799 crore. This budget will cover both the kharif 2026 and rabi 2026–27 cropping seasons.
Conclusion
The government’s decision to enhance the subsidy outlay and revise nutrient rates reflects its continued focus on supporting the agricultural sector. The move is expected to ensure fertiliser availability and affordability ahead of the crucial kharif sowing season.
Summary:
The Cabinet has approved a ₹41,534 crore subsidy for P&K fertilisers for kharif 2026, marking a 12% increase from last year. Revised nutrient rates under the Nutrient Based Subsidy scheme aim to ensure fertiliser availability and support farmers during the upcoming sowing season.
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