Govt approves nutrient-based subsidy rates for Rabi 2025–26

Ziraat Times Team Report

New Delhi, January 5: The Union Government has approved the Nutrient-Based Subsidy (NBS) rates for the Rabi cropping season 2025–26. The approved rates will remain effective from October 1, 2025, to March 31, 2026, and will apply to Phosphatic and Potassic (P&K) fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades.

The tentative budgetary requirement for Rabi 2025–26 has been estimated at ₹37,952.29 crore, which is about ₹736 crore higher than the budgetary requirement for the Kharif 2025 season. Between 2022–23 and 2024–25, the Government has allocated over ₹2.04 lakh crore under the NBS Scheme, ensuring affordable access to fertilisers for farmers across the country.

Focus on balanced fertilisation and soil health

Balanced fertilisation is widely recognised as a cornerstone of sustainable agriculture, critical for maintaining soil fertility, improving crop yields and supporting long-term productivity. The Government of India continues to prioritise the Nutrient-Based Subsidy Scheme as a key policy instrument to encourage judicious nutrient use while keeping fertiliser prices affordable for farmers.

Introduced with effect from April 1, 2010, the NBS Scheme marked a major reform in the fertiliser sector by shifting subsidies from product-based controls to nutrient-based support. Under this framework, subsidies are provided on the basis of nutrient content—Nitrogen (N), Phosphorus (P), Potassium (K) and Sulphur (S)—enabling farmers to select fertilisers based on soil and crop requirements rather than price distortions.

By promoting balanced nutrient application and encouraging the use of secondary and micronutrients, the scheme addresses soil degradation and nutrient imbalance caused by prolonged skewed fertiliser use.

Outcomes and policy priorities of NBS

The Nutrient-Based Subsidy Scheme of the Ministry of Chemicals and Fertilisers aims to promote balanced application of essential nutrients, reduce over-dependence on any single fertiliser, and improve farm productivity while safeguarding soil health. The scheme ensures timely availability of fertilisers at affordable prices, enabling smooth crop planning across regions.

The NBS framework also encourages competition among fertiliser companies, leading to improvements in quality, innovation and efficiency. It supports the introduction of new and advanced fertiliser products, including micronutrient-enriched grades, thereby contributing to the modernisation of agricultural practices.

At the fiscal level, the scheme rationalises subsidy expenditure by aligning support levels with global fertiliser and raw material price trends, balancing farmer support with fiscal prudence.

Salient features and coverage expansion

Under the NBS Scheme, the Government provides a fixed subsidy, revised annually or biannually, on P&K fertilisers, including DAP. The subsidy amount is linked to the nutrient composition of each fertiliser grade.

Until Rabi 2023–24, the scheme covered 25 P&K fertiliser grades such as DAP, MOP and SSP. From Kharif 2024 onwards, three additional fertiliser grades were included:

• NPK (11:30:14) fortified with Magnesium, Zinc, Boron and Sulphur

• Urea-SSP (5:15:0:10)

• SSP (0:16:0:11) fortified with Magnesium, Zinc and Boron

With these additions, farmers now have access to 28 subsidised P&K fertiliser grades, supplied through authorised manufacturers and importers.

The P&K fertiliser sector operates under a decontrolled pricing regime, allowing companies to fix Maximum Retail Prices (MRPs) at reasonable levels under government oversight. Farmers receive the subsidy benefit directly at the point of purchase.

Approved NBS rates for rabi 2025–26

Considering prevailing trends in international and domestic fertiliser markets, the Government has approved NBS rates for Rabi 2025–26 applicable to all P&K fertilisers, including DAP and NPKS grades.

Per kg subsidy on nutrients (₹)

• Nitrogen (N): ₹43.02

• Phosphate (P): ₹47.96

• Potash (K): ₹2.38

• Sulphur (S): ₹2.87

Product-wise subsidy on 28 fertiliser grades (₹ per MT)

Key rates include:

• DAP (18-46-0-0): ₹29,805

• MOP (0-0-60-0): ₹1,428

• SSP (0-16-0-11): ₹7,408

• NPS (20-20-0-13): ₹18,569

• NPK (10-26-26): ₹17,390

• NP (20-20-0): ₹18,196

• NPK (15-15-15): ₹14,004

• MAP (11-52-0): ₹29,671

• TSP (0-46-0): ₹22,062

• NPK (11-30-14): ₹19,453

All 28 fertiliser grades, including PDM (0-0-14.5-0) at ₹345 per MT and Urea-SSP Complex (5-15-0-10) at ₹9,088 per MT, remain covered.

Additional subsidy for fortified fertilisers

• Boron (B): ₹300 per MT

• Zinc (Zn): ₹500 per MT

Any P&K fertiliser fortified or coated with Boron or Zinc, as specified under the Fertiliser Control Order, will continue to receive this additional subsidy.

Notably, the DAP subsidy has been increased to ₹29,805 per MT, compared to ₹21,911 per MT during Rabi 2024–25. Ammonium Sulphate, both domestic and imported, has also been included under the NBS Scheme for Rabi 2025–26.

Compliance, monitoring and transparency

To ensure effective implementation, fertiliser companies must submit audited cost data and regularly report MRPs to the Department of Fertilisers. Profit margins beyond prescribed limits—8% for importers, 10% for manufacturers and 12% for integrated manufacturers—are treated as unreasonable and recoverable.

Each fertiliser bag must clearly display the MRP and applicable subsidy, and charging above MRP is punishable under the Essential Commodities Act, 1955.

Production, imports, movement and distribution are monitored through the Integrated Fertiliser Monitoring System (iFMS). Manufacturers and importers are responsible for F.O.R. delivery up to retail points.

Weekly video conferences between the Department of Fertilisers, DA&FW and State Agriculture officials ensure real-time coordination and resolution of supply issues.

Production growth and farm outcomes

Policy support under NBS has driven strong growth in domestic P&K fertiliser production. DAP and NPKS output increased by over 50%, from 112.19 LMT in 2014 to 168.55 LMT in 2025 (up to 30 December 2025).

Improved nutrient application has also contributed to higher farm productivity. Foodgrain yields rose from 1,930 kg per hectare in 2010–11 to 2,578 kg per hectare in 2024–25, reflecting improved soil health and balanced fertiliser use.