Cabinet Approves Nutrient-Based Subsidy (NBS) Rates for Rabi Season 2025–26

On 28 October 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Rabi season 2025–26.

Time Period Covered:
The approved rates will apply from October 1, 2025, to March 31, 2026.

Budget Allocation:

• Tentative requirement: ₹37,952.29 crore.
• This is about ₹736 crore higher than the allocation for the Kharif 2025 season.

Coverage:
Subsidies will be provided on P&K fertilizers, including:

• Di-Ammonium Phosphate (DAP)
• NPKS grades (Nitrogen, Phosphorus, Potash, and Sulphur-based fertilizers)
• Other 28 notified grades of P&K fertilizers available under the NBS scheme.

Objective:

• To ensure availability of fertilizers to farmers at affordable and reasonable prices.
• To rationalise subsidies in light of fluctuating international prices of fertilizers and raw materials.

Implementation:
The government makes P&K fertilizers available through manufacturers and importers at subsidised rates, with the subsidy being transferred directly to the companies based on nutrient content and notified NBS rates.

About the NBS Scheme:

• Launched: April 1, 2010.
• Under this scheme, the subsidy is fixed per kilogram of nutrient content (N, P, K, S) in the fertilizer.
• Aims to promote balanced fertilizer use, improve soil health, and reduce fiscal burden through subsidy rationalisation.

Significance:

• Ensures price stability and availability of key fertilizers during the Rabi season.
• Helps farmers maintain nutrient balance in soil and boost crop productivity.
• Reflects the government’s focus on agricultural sustainability and input cost management.