Government Clears ₹41,534 Crore Subsidy for Phosphatic and Potassic fertilisers for Kharif 2026 Season

The Union Cabinet has approved a subsidy of ₹41,534 crore for phosphatic and potassic (P&K) fertilisers for the 2026 kharif season. As per PTI report, the outlay is about 12% higher than the previous year, with an increase of ₹4,317 crore over the 2025 kharif allocation. 

The decision was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi. The revised rates will be effective from April 1 to September 30, 2026. 

Revised Nutrient Subsidy Rates 

For the kharif 2026 season, the subsidy for nitrogen has been fixed at ₹47.32 per kg, while phosphate will receive ₹52.76 per kg. The rate for sulphur has been set at ₹3.16 per kg. 

Potash subsidy remains unchanged at ₹2.38 per kg. In comparison, during the preceding rabi season, nitrogen was subsidised at ₹43.02 per kg, phosphate at ₹47.96 per kg and sulphur at ₹2.87 per kg, indicating an increase in support for select nutrients. 

Scheme Structure and Pricing 

The subsidy is provided under the Nutrient Based Subsidy (NBS) scheme, which has been in place since April 2010. The scheme covers 28 grades of P&K fertilisers and links subsidy payments to nutrient content. 

Retail prices of non-urea fertilisers, including Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and NPK blends, are determined by manufacturers. 

 The government provides a fixed subsidy to offset part of the cost. 

Seasonal Relevance and Broader Allocation 

The kharif sowing season typically begins with the onset of the southwest monsoon in June, making fertiliser availability critical during this period. 

For FY 2026-27, the total budgetary allocation for fertiliser subsidies, including both urea and NBS schemes, is estimated at ₹1,70,799 crore. This covers the kharif 2026 and rabi 2026-27 seasons. 

Read More: RBI Reports Average Monthly Reimbursement of Unclaimed Deposits Hits ₹760 Crore! 

Conclusion 

The approved subsidy and revised nutrient rates set the framework for fertiliser support ahead of the kharif sowing cycle, with higher allocations compared to the previous year. 

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