Union Cabinet Approves Nutrient-Based Subsidy for Rabi 2025-26

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the nutrient-based subsidy rates for phosphatic and potassic (P&K) fertilisers for the Rabi season of 2025-26. This decision, made on October 28, 2023, aims to ensure farmers have access to these essential inputs at affordable prices. The subsidy will be applicable from October 1, 2025, to March 31, 2026.

The Department of Fertilisers proposed the new subsidy rates, with a budgetary requirement estimated at approximately Rs 37,952.29 crore. This figure represents an increase of about Rs 736 crore compared to the budget for the Kharif season of 2025. The initiative is designed to facilitate the smooth availability of fertilisers, particularly Di Ammonium Phosphate (DAP) and NPKS grades, at subsidised rates.

The Ministry of Chemicals and Fertilisers highlighted that the subsidy is governed by the existing Nutrient-Based Subsidy Scheme. This move aligns with the government’s commitment to providing farmers with affordable fertilisers. The Centre has made available 28 grades of P&K fertilisers, including DAP, assuring farmers of continuous access to these critical inputs.

With the announcement of increased minimum support prices (MSP) for various crops expected in the upcoming Rabi marketing season, farmers are poised to benefit significantly. The government’s estimated procurement of foodgrains for the 2026-27 season is projected at Rs 84,263 crore, covering approximately 297 lakh metric tonnes. This represents substantial growth from Rs 1.06 lakh crore in 2014-15 to Rs 3.33 lakh crore in the current financial year, while procurement has risen from 761.40 lakh metric tonnes to 1,175 lakh metric tonnes during the same period.

This decision by the Union Cabinet reflects a broader strategy to rationalise subsidies in light of international trends in fertiliser pricing. By adjusting the subsidy framework, the government aims to ensure that farmers continue to receive vital agricultural inputs without facing a significant financial burden.

Overall, the approved rates are expected to contribute positively to the agricultural sector, reinforcing the government’s dedication to supporting farmers through accessible and affordable fertilisation options.