Source: IE
Context:
The Union Cabinet, chaired by the Prime Minister, approved NBS rates for Rabi 2025–26 for Phosphatic and Potassic (P&K) fertilizers to ensure smooth availability at affordable prices.
Definition
- A centrally sponsored scheme under the Department of Fertilizers, Ministry of Chemicals and Fertilizers.
- Provides fixed subsidy per kg of nutrient content (N, P, K, S) in P&K fertilizers.
- Launched on 1st April 2010, replacing the earlier product-based subsidy system for non-urea fertilizers.
Objectives
- Ensure fertilizers are available to farmers at reasonable prices.
- Promote balanced fertilizer use based on soil and crop needs.
- Encourage the fertilizer industry towards efficiency, cost-effectiveness, and competition.
Key Features
- Subsidy based on nutrient content: Fixed ₹/kg for N, P, K, S nutrients instead of per-product subsidy.
- Freedom in MRP fixation: Fertilizer companies can set MRPs, monitored by the government.
- Coverage: 28 grades of P&K fertilizers, including DAP and NPKS grades.
- Special Support: Government may announce additional packages to stabilize prices amid global volatility.
- Urea exception: Urea remains under statutory price control, with fixed MRP of ₹242 per 45-kg bag since March 2018.
