The Union Cabinet cleared a ₹62,370.02 crore nutrient-based fertiliser subsidy package for the 2026-27 rabi season on Wednesday, absorbing volatile global commodity swings to keep agricultural inputs affordable for millions of cultivators.
Prime Minister Narendra Modi announced the decision following a Cabinet meeting, targeting phosphatic and potassic (P&K) soil nutrients ahead of the nationwide winter sowing push. The budgetary commitment represents a sharp surge in farm-sector support. New Delhi will spend approximately ₹24,417.73 crore more than the ₹37,952.29 crore sanctioned during the 2025-26 rabi window.
The math is straightforward. International raw material rates remain erratic. Without state intervention, the burden lands square on domestic cultivators.
Our farmers across the country have always been our top priority. Even amid difficult conditions worldwide, we are leaving no stone unturned to make their lives easier. As part of these efforts, a nutrient-based subsidy on fertilisers for the 2026
27 rabi season has been approved today. This will shield our farmers from fluctuations in international prices while ensuring they continue to receive fertilisers at affordable, reasonable prices." — Narendra Modi, Prime Minister of India
The approved pricing framework takes effect on October 1, 2026, and runs through March 31, 2027, covering the entire rabi cultivation cycle. By locking in the rates early, the government aims to prevent supply chain bottlenecks and retail hoardings as farmers prepare their fields for sowing winter crops.
Global prices for critical agricultural feedstocks—including Urea, Di-ammonium Phosphate (DAP), Muriate of Potash (MOP), and Sulphur—have recorded sharp shifts across international trading hubs. Instead of allowing manufacturers to pass import price escalation onto retail counters, the Centre will channel the subsidy directly to fertiliser manufacturers and importers based on approved and notified rates.
| Financial & Policy Metric | Rabi 2025-26 Cycle | Rabi 2026-27 Approved Cycle |
|---|---|---|
| Total Budgetary Requirement | ₹37,952.29 crore | ₹62,370.02 crore |
| Net Outlay Expansion | Baseline | +₹24,417.73 crore |
| Effective Operational Period | Historical Rabi Window | October 01, 2026 – March 31, 2027 |
| Covered Fertiliser Formulations | P&K and DAP Grades | 28 Grades of P&K, DAP & NPKS |
| Statutory Policy Foundation |
Under the current mandate, the government delivers subsidized pricing across 28 distinct grades of P&K fertilisers, with Di-ammonium Phosphate (DAP) and varied Nitrogen-Phosphorus-Potassium-Sulphur (NPKS) complexes forming the bedrock of farm usage. The statutory architecture governing these disbursements dates back to April 1, 2010, when the Centre instituted the Nutrient Based Subsidy scheme to link state support directly to the nutrient content of each chemical bag.
The administrative apparatus now shifts toward disbursement and logistics. Fertiliser companies will supply the market at fixed affordable retail thresholds, claiming the approved differential directly from the government based on audited volumes released into distribution networks.
With Cabinet clearance secured, the Department of Fertilisers will notify the revised per-kilogram subsidy rates across all 28 grades ahead of the official rollout on October 1, 2026.
| NBS Framework (w.e.f. 01.04.2010) |
| NBS Framework (w.e.f. 01.04.2010) |