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Government Approves Nutrient-Based Subsidy Rates for Rabi 2025–26

Written by: Akshay ShivalkarUpdated on: 5 Jan 2026, 7:18 pm IST
Centre clears NBS rates for P&K fertilisers effective October 1, 2025, with a budgetary outlay of ₹37,952 crore for the season.
Government Approves Nutrient-Based Subsidy Rates for Rabi 2025–26
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The Government of India has approved Nutrient-Based Subsidy (NBS) rates for the Rabi 2025–26 season, effective from October 1, 2025, to March 31, 2026. The scheme covers Phosphatic and Potassic (P&K) fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades.

The tentative budgetary requirement for the season is approximately ₹37,952 crore, which is ₹736 crore higher than the allocation for Kharif 2025. The NBS scheme continues to play a pivotal role in ensuring affordable access to fertilisers while promoting balanced nutrient application for sustainable agriculture.

Policy Framework and Objectives

Introduced on April 1, 2010, the NBS scheme marked a significant shift in India’s fertiliser policy by linking subsidies to nutrient content rather than product type. Under this framework, subsidies are provided on key nutrients, Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S), contained in P&K fertilisers.

This approach encourages judicious use of fertilisers, prevents soil nutrient imbalance, and supports long-term agricultural productivity. The scheme also promotes the adoption of secondary and micronutrients, addressing issues of soil degradation caused by skewed fertiliser usage.

Approved Rates and Budgetary Allocation

For Rabi 2025–26, the government has fixed per kg subsidy rates at ₹43.02 for Nitrogen, ₹47.96 for Phosphate, ₹2.38 for Potash, and ₹2.87 for Sulphur. The product-wise subsidy for 28 grades of fertilisers includes ₹29,805 per metric tonne for DAP, a significant increase from ₹21,911 during Rabi 2024–25. Other notable rates include ₹1,428 per metric tonne for MOP and ₹7,408 for SSP. The inclusion of Ammonium Sulphate under the NBS scheme for this season further expands the range of subsidised fertilisers.

Expansion Of Fertiliser Grades and Market Impact

Until Rabi 2023–24, the NBS scheme covered 25 grades of P&K fertilisers. From Kharif 2024 onward, three new grades were added, including fortified NPK and Urea-SSP complexes, bringing the total to 28 grades.

This expansion ensures farmers have access to a wider range of nutrient-rich fertilisers at competitive prices. Operating under a decontrolled regime, manufacturers set Maximum Retail Prices (MRP) while passing on the subsidy benefit to farmers, ensuring affordability and timely availability during peak cropping seasons.

Read More: Indian Firms Partner with Uralchem to Collaborate on Urea Plant in Russia.

Conclusion

The approval of NBS rates for Rabi 2025–26 highlights the government’s emphasis on balanced fertilisation and farmer welfare. Enhanced subsidies for key fertilisers such as DAP and wider coverage of fortified grades are intended to keep inputs affordable.

The scheme also seeks to promote more efficient nutrient use across crops. The ₹37,952 crore allocation underlines the scale of support provided to ensure timely access to essential fertilisers for the season.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 5, 2026, 1:46 PM IST

Akshay Shivalkar

Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.

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