Union Cabinet approves ₹41,533 crore fertiliser subsidy for Kharif 2026

Ziraat Times Team Report

New Delhi, April 8: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Nutrient Based Subsidy (NBS) rates for the Kharif season 2026 to ensure affordable fertilisers for farmers.

The subsidy will apply to Phosphatic and Potassic (P&K) fertilisers, including DAP and NPKS grades, for the period from April 1 to September 30, 2026.

Higher subsidy outlay

The government has earmarked an estimated ₹41,533.81 crore for the Kharif 2026 season, which is about ₹4,317 crore higher than the ₹37,216.15 crore allocated in Kharif 2025.

What it means for farmers

The decision aims to:

• Ensure steady availability of fertilisers during the sowing season

• Keep fertiliser prices affordable and stable despite global price fluctuations

• Support farmers in managing input costs

How the scheme works

Under the NBS scheme, subsidies are provided to fertiliser companies based on fixed nutrient rates. This allows companies to supply fertilisers like DAP and NPK at controlled prices, ensuring farmers do not bear the full impact of rising global costs.

Background

The Nutrient Based Subsidy scheme has been in place since April 2010 and covers 28 grades of P&K fertilisers. The government provides subsidies through manufacturers and importers to maintain price stability in the domestic market.

The latest decision comes amid fluctuations in international prices of key inputs such as urea, DAP, MOP and sulphur, which have influenced the higher subsidy requirement for the upcoming season.

Bottom line

With increased spending, the government aims to shield farmers from rising global fertiliser prices and ensure timely availability of key inputs during the crucial Kharif cropping season.