The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an estimated Rs 62,370.02 crore subsidy for phosphatic and potassic (P&K) fertilisers for the Rabi 2026-27 season.
As per media reports, the allocation will cover the six-month period from October 1, 2026, to March 31, 2027. It is Rs 24,417.73 crore higher than the Rs 37,952.29 crore approved for the previous Rabi season.
The move aims to ensure the availability of essential fertilisers, including Di-Ammonium Phosphate (DAP) and various NPKS grades, at affordable prices for farmers despite fluctuations in international markets.
Prime Minister Modi said farmers remained a top priority for the government. He added that the Centre was taking steps to reduce the financial burden on farmers amid challenging global conditions.
Under the Nutrient Based Subsidy (NBS) scheme, fertiliser companies will receive subsidies at government-notified rates. The support will help manufacturers and importers supply P&K fertilisers to farmers at subsidised prices.
The NBS scheme has been in operation since April 1, 2010. It covers 28 grades of P&K fertilisers, with subsidies determined according to their nitrogen, phosphorus, potash and sulphur content.
The latest approval takes into account changes in international fertiliser and raw material prices. The government said the revised subsidy rates would help maintain a steady supply of essential nutrients during the Rabi sowing season.
