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Cabinet Approves ₹37,952 Crore Fertilizer Subsidy for Rabi 2025-26 Season

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Source: ET

Context:

The Union Cabinet has approved a fertilizer subsidy of ₹37,952 crore for the Rabi (winter) season 2025-26, ensuring timely availability of key nutrients such as nitrogen (N), phosphorus (P), potash (K), and sulphur (S) for farmers. The decision aims to stabilise fertilizer prices and support agricultural productivity amid fluctuating global import costs.

Key Highlights:

  • Total Subsidy: ₹37,952 crore for Rabi 2025-26 — an increase of ₹14,000 crore compared to the previous Rabi season (₹24,000 crore in 2024-25).
  • Period of Applicability: From October 1, 2025 to March 31, 2026.
Subsidy Structure (per kg of nutrient):
  • Nitrogen (N): ₹43.02 (unchanged from Kharif 2025)
  • Phosphorus (P): ₹47.96 (up from ₹43.60 during Kharif 2025)
  • Potash (K): ₹2.38 (unchanged)
  • Sulphur (S): ₹2.87 (up from ₹1.77 during Kharif 2025)

About the Nutrient Based Subsidy (NBS) Scheme

  • Launched: April 2010.
  • Administered by: Department of Fertilizers.
  • Objective: To promote balanced fertilizer use and soil health management by providing subsidies on nutrients rather than specific fertilizer brands.
  • Mechanism:
    • Subsidy is fixed per kilogram of N, P, K, and S content.
    • Manufacturers sell fertilizers at market rates after accounting for government subsidy.
  • Types of Fertilizers Covered:
    • DAP (Di-Ammonium Phosphate)
    • MOP (Muriate of Potash)
    • NPK Complex fertilizers
    • SSP (Single Super Phosphate)

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