Cabinet Approves ₹62,370 Crore Rabi Fertiliser Subsidy to Shield Farmers From Global Price Volatility

NEW DELHI — The Union Cabinet cleared a tentative ₹62,370.02 crore fertiliser subsidy package on Wednesday, locking in state support for Indian farmers ahead of the Rabi 2026-27 sowing cycle.

Prime Minister Narendra Modi hailed the approval of the Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers, declaring that agricultural producers remain the central government's highest operational priority. The move directly intervenes in farm economics as global supply chains face persistent price volatility.

"The nation's farmers have always been the top priority of the government," Prime Minister Modi stated in a public address on X.

The financial commitment represents a massive jump in public expenditure. The Centre's tentative budgetary requirement of approximately ₹62,370.02 crore stands ₹24,417.73 crore higher than the outlay cleared for the preceding Rabi 2025-26 season.

Shielding Growers From Global Price Shocks

Winter-sown crops depend heavily on steady, affordable supplies of soil nutrients. The Cabinet decision establishes per-kilogram subsidy rates that absorb raw material spikes before retail invoices reach rural distributors.

By setting fixed subsidy buffers, the government aims to prevent swings in overseas commodity markets from driving up retail farmgate costs during prime sowing windows.

Prime Minister Modi noted that despite volatile global trade headwinds, the administration remains focused on insulating domestic growers from unexpected input inflation.

Budgetary Allocations and Seasonal Outlays

The scale of the subsidy expansion underlines the rising fiscal commitment required to stabilize domestic agricultural supplies.