The Union Cabinet on Wednesday approved Nutrient Based Subsidy (NBS) rates for phosphatic and potassic fertilisers for the Rabi 2026-27 season, raising the estimated subsidy requirement by 64.3% to 623.70 billion rupees from 379.52 billion rupees a year earlier. The estimated subsidy requirement for the October-March season is 244.18 billion rupees higher than the corresponding period last year, according to an official statement.

The Cabinet, chaired by Prime Minister Narendra Modi, approved the revised subsidy rates for phosphatic and potassic fertilisers, including di-ammonium phosphate (DAP) and NPKS grades, for the period from October 1, 2026, to March 31, 2027. The government said the revision was necessitated by recent trends in international prices of fertilisers and key inputs, including urea, DAP, muriate of potash and sulphur.

The higher subsidy provision is aimed at ensuring the availability of fertilisers to farmers at affordable prices during the Rabi cropping season, while adjusting government support in line with movements in global input costs.

Under the approved framework, subsidies will be provided to fertiliser manufacturers and importers based on the notified nutrient-based rates, allowing companies to supply covered fertilisers to farmers at subsidised prices. The government currently provides subsidies on 28 grades of phosphatic and potassic fertilisers, including DAP, under the NBS scheme, which has been in operation since April 1, 2010. The scheme provides nutrient-based subsidies on fertilisers containing nitrogen, phosphorus, potassium and sulphur, with the government periodically revising rates based on international price movements and other cost considerations.

The government said the latest revision would help maintain fertiliser availability during the Rabi season and protect farmers from fluctuations in international fertiliser prices.

The approval also reflects a substantial increase in the government's estimated subsidy commitment for phosphatic and potassic fertilisers compared with the previous Rabi season.