Nutrient-Based Subsidy (NBS) for Kharif 2025-26
Approval & Allocation
₹37,216 crore allocated for the first half of FY26 (H1FY26).41% increase in per kg subsidy on phosphorus (P) compared to Rabi FY25.Total fertilizer subsidy for FY25 revised to ₹1.91 trillion , up 14% from the budget estimate of ₹1.68 trillion .
Impact on DAP & Other Fertilizers
Despite the increase, companies still face a ₹1,000 per tonne loss on DAP imports at current prices.Phosphorus subsidy increase benefits multiple fertilizers beyond DAP, including NP and NPK grades.DAP subsidy raised from ₹25,411 per tonne to ₹27,800 per tonne for Kharif 2025.
Market & Industry Reactions
Government aims to stabilize fertilizer prices —no hike in DAP retail rates since 2014, absorbing costs via subsidies.ICRA estimates losses on DAP imports will shrink from ₹4,000 per tonne to ₹1,000 per tonne due to revised subsidy rates and rupee appreciation.
Nutrient-Based Subsidy (NBS) Rates for Kharif 2025-26 (₹/kg)
Nutrient Kharif FY25 Rabi FY25 Kharif FY26 % Change YoY (Kharif FY25 vs. FY26) % Change (Rabi FY25 vs. Kharif FY26) Nitrogen (N) 47.02 43.02 43.02 -8.51% 0.00% Phosphorus (P) 28.72 30.8 43.6 51.81% 41.56% Potassium (K) 2.38 2.38 2.38 0.00% 0.00% Sulphur (S) 1.89 1.76 2.61 38.10% 48.30%
The higher phosphorus subsidy reduces industry losses and benefits multiple fertilizers.
The total fertilizer subsidy for FY26 is expected to remain high given volatile global input prices.
Potential price reductions in global markets could further ease the burden on fertilizer companies.
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