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

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the nutrient-based subsidy rates for the Rabi 2025-26 season, specifically targeting phosphatic and potassic (P&K) fertilisers. This decision aims to ensure that farmers have access to these essential inputs at affordable prices during the critical planting and harvesting period.

The approved subsidy rates will be effective from October 1, 2025, until March 31, 2026. According to the Ministry of Chemicals and Fertilisers, the estimated budget for this initiative stands at approximately Rs 37,952.29 crore, which is about Rs 736 crore more than the budget allocated for the Kharif season of 2025. The subsidy will include key fertiliser products such as Di Ammonium Phosphate (DAP) and NPKS grades, facilitating their availability to farmers at subsidised prices.

The government’s commitment to providing affordable fertilisers aligns with recent fluctuations in international fertiliser prices. By rationalising the subsidy on P&K fertilisers, officials aim to maintain a stable supply chain that supports farmers in their agricultural endeavours.

In total, the government will provide 28 distinct grades of P&K fertilisers, including DAP, through manufacturers and importers. This is part of the broader Nutrient-Based Subsidy (NBS) Scheme, which is designed to ensure that fertilisers remain accessible to farmers at reasonable rates.

Financial Implications for Farmers

The recent approval is expected to have a significant impact on farmers’ finances. With the anticipated increase in minimum support prices (MSP) for various crops during the Rabi marketing season of 2026-27, farmers could receive approximately Rs 84,263 crore. The government projects procurement could reach around 297 lakh metric tonnes during this period, reflecting a concerted effort to bolster agricultural productivity.

Historically, MSP payouts have seen remarkable growth, rising from Rs 1.06 lakh crore in the 2014-15 fiscal year to Rs 3.33 lakh crore for the period of July 2024 to June 2025. Over the same span, procurement has surged from 761.40 lakh metric tonnes to 1,175 lakh metric tonnes, benefiting approximately 1.84 crore farmers across the country.

The government’s initiatives underscore a strong commitment to the agricultural sector, ensuring that farmers can access essential resources while navigating an increasingly challenging economic landscape. By maintaining support through subsidy schemes and strategic procurement, officials hope to foster a sustainable agricultural environment that benefits both producers and consumers alike.

As the Rabi 2025-26 season approaches, all eyes will be on how these subsidy rates will translate into tangible benefits for farmers and the agricultural economy as a whole.