Cabinet approves ₹62,370-crore fertiliser subsidy for Rabi season

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The package includes Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the period October 1, 2026, to March 31, 2027.

By BL New Delhi Bureau

Updated - November 11, 2026 at 04:18 PM.

Under the approved NBS rates, the subsidy has been fixed at ₹94.21 per kg for nitrogen, ₹66.11 per kg for phosphorus, ₹2.38 per kg for potash and ₹10.42 per kg for sulphur. | Photo Credit: REUTERS/BHAWIKA CHHABRA

The Union Cabinet on Wednesday approved a fertiliser subsidy package of Rs 62,370 crore for the Rabi 2026-27 season, a 64 per cent increase over the Rs 37,952 crore allocated for the previous Rabi season, with provisions to keep Di-ammonium Phosphate (DAP) available to farmers at a fixed price of Rs 1,350 per bag.

The package includes Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the period October 1, 2026, to March 31, 2027. It also provides for special assistance for DAP, extension of these provisions to Triple Superphosphate (TSP) and Monoammonium Phosphate (MAP), freight subsidy for Single Superphosphate (SSP), and continuation of subsidy on ammonium sulphate.

The enhanced outlay comes against the backdrop of global fertiliser price volatility and disruptions arising from the West Asia crisis. The government said the package would ensure adequate availability of fertilisers during the Rabi season, while keeping input costs stable for farmers.

Under the approved NBS rates, the subsidy has been fixed at Rs 94.21 per kg for nitrogen, Rs 66.11 per kg for phosphorus, Rs 2.38 per kg for potash and Rs 10.42 per kg for sulphur.

The government will continue special provisions beyond the NBS framework to ensure DAP is available at Rs 1,350 per bag. These provisions have also been extended to imported and domestic TSP and imported MAP.

The freight subsidy on SSP will continue during the Rabi season to encourage its use as an affordable alternative to DAP. The subsidy on imported and domestic ammonium sulphate will also be continued.

In a push to strengthen domestic production and reduce import dependence, the Cabinet has also approved a sulphur package for domestic manufacturers. Under this, manufacturers will receive 20 per cent of the actual procurement cost of sulphur, subject to a floor price of $800 per tonne. For sulphuric acid, the assistance will be 20 per cent of the actual procurement cost, subject to a floor price of $266.67 per tonne. Detailed guidelines will be issued by the Department of Fertilisers.

The government expects the package to revive domestic production, reduce reliance on imports and promote the use of alternatives such as SSP in place of DAP and ammonium sulphate in place of urea, thereby encouraging balanced nutrient application.

The country’s total fertiliser stocks stood at 235.21 lakh tonnes as on November 10, 2026, against 173.46 lakh tonnes on the corresponding date last year. Urea stocks were at 103.12 lakh tonnes, compared with 72.14 lakh tonnes a year ago, while DAP stocks rose to 28.65 lakh tonnes from 24.86 lakh tonnes. NPK stocks increased to 60.87 lakh tonnes from 42.44 lakh tonnes, while MOP stocks nearly doubled to 20.08 lakh tonnes from 10.78 lakh tonnes. SSP stocks, however, were marginally lower at 22.49 lakh tonnes against 23.24 lakh tonnes.

The package is aimed at ensuring timely availability of fertilisers through the Rabi season and supporting farm incomes and food security by insulating farmers from fluctuations in global input prices.

Published on November 11, 2026

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