The Union Cabinet has approved a ₹62,370 crore subsidy for phosphatic and potassic (P&K) fertilisers for the 2026-27 rabi season, representing a 64% increase over the previous winter season’s estimated requirement. The higher allocation is intended to protect farmers from rising international fertiliser prices amid geopolitical disruptions, including the Russia-Ukraine war and tensions in West Asia.
The government has also retained the retail price of di-ammonium phosphate (DAP) at ₹1,350 per 50 kg bag. The revised Nutrient Based Subsidy (NBS) rates will apply from October 1, 2026, to March 31, 2027. The decision comes as India’s fertiliser stocks have increased by 35.6% year-on-year, providing additional supply visibility ahead of the rabi cropping season.
Cabinet Approves ₹62,370 Crore Fertiliser Subsidy for Rabi 2026-27
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the revised NBS rates for P&K fertilisers on November 11, 2026.
The estimated budgetary requirement for the six-month rabi season stands at ₹62,370.02 crore. This is approximately ₹24,417.73 crore higher than the ₹37,952.29 crore estimated requirement for the 2025-26 rabi season.
| Financial indicator | Rabi 2026-27 | Rabi 2025-26 |
|---|---|---|
| Estimated subsidy requirement | ₹62,370.02 crore | ₹37,952.29 crore |
| Increase in allocation | ₹24,417.73 crore | — |
| Year-on-year increase | Approximately 64% | — |
| Subsidy period | October 2026-March 2027 | October 2025-March 2026 |
The increase reflects the government’s response to higher global fertiliser and raw material prices. India imports a significant portion of its fertiliser requirements and is therefore exposed to international price movements, shipping costs and disruptions in global supply chains.
Union Information and Broadcasting Minister Ashwini Vaishnaw said fertiliser prices had risen significantly following geopolitical developments, including the Russia-Ukraine conflict and the West Asia crisis.
The government intends to absorb a larger share of these costs through subsidies rather than allowing the entire increase to be passed on to farmers.
DAP Price Remains at ₹1,350 Per 50 kg Bag
One of the most important elements of the Cabinet decision is the continuation of the existing retail price of DAP.
The government has retained the price at ₹1,350 for a 50 kg bag, despite rising international fertiliser costs.
DAP is an important source of phosphorus and nitrogen and is widely used by farmers during crop cultivation. It plays a significant role in supporting root development and early plant growth.
Keeping its retail price unchanged helps farmers manage cultivation expenses, particularly during a season when fertiliser availability and input costs can influence agricultural decisions.
The subsidy is provided to fertiliser manufacturers and importers under the NBS framework, allowing eligible products to be supplied at prices below what would otherwise be required to reflect international costs.
Revised Nutrient Based Subsidy rates
The Cabinet approved the following subsidy rates for the four nutrients covered under the NBS framework for the rabi season:
| Nutrient | Approved subsidy rate |
|---|---|
| Nitrogen (N) | ₹94.21 per kg |
| Phosphorus (P) | ₹66.11 per kg |
| Potash (K) | ₹2.38 per kg |
| Sulphur (S) | ₹10.42 per kg |
These rates apply to eligible phosphatic and potassic fertiliser grades under the scheme.
The NBS framework covers 28 grades of P&K fertilisers, including DAP and different NPKS formulations.
What Is the Nutrient Based Subsidy Scheme?
The Nutrient Based Subsidy scheme is a government programme designed to make phosphatic and potassic fertilisers more affordable for farmers.
Instead of providing a uniform subsidy for every product, the government determines support according to the quantity of nutrients contained in eligible fertilisers.
The framework covers four major nutrients: nitrogen, phosphorus, potash and sulphur.
Fertiliser companies receive subsidies based on the nutrient composition of their eligible products. This allows manufacturers and importers to supply fertilisers to farmers at more affordable prices.
The government revises subsidy rates for the kharif and rabi seasons, taking into account changes in international fertiliser prices, raw material costs and other relevant market conditions.
Why fertiliser subsidies matter
Fertilisers are essential agricultural inputs because they help replenish nutrients in soil and support crop growth.
Farmers growing wheat, pulses, oilseeds and other rabi crops require different combinations of nutrients depending on the crop, soil conditions and cultivation practices.
If fertiliser prices rise sharply, farmers may face higher production costs. This can affect their purchasing decisions and potentially influence crop productivity if nutrient application is reduced.
Government subsidies help limit the impact of international price fluctuations on domestic agricultural costs.
India’s Fertiliser Subsidy Budget Stands at ₹1.7 Lakh Crore
The ₹62,370 crore allocation for the rabi season is part of the government’s broader fertiliser subsidy budget for FY2026-27.
The Centre has budgeted approximately ₹1.7 lakh crore for fertiliser subsidies during the financial year.
Of this amount, around ₹1.17 lakh crore has been allocated towards urea subsidies.
The government also continues to provide freight support for single superphosphate (SSP), encouraging its use as a more affordable alternative to DAP. Subsidies for domestically produced and imported ammonium sulphate will also continue during the rabi season.
| Fertiliser subsidy component | FY2026-27 allocation |
|---|---|
| Total fertiliser subsidy budget | ₹1.70 lakh crore |
| Urea subsidy budget | ₹1.17 lakh crore |
| Rabi P&K subsidy requirement | ₹62,370 crore |
The distinction between the annual fertiliser subsidy budget and the rabi P&K subsidy requirement is important. The ₹62,370 crore figure covers the approved P&K subsidy requirement for the six-month rabi season, not the entire annual fertiliser subsidy programme.
Fertiliser Stocks Rise 35.6% Ahead of Rabi Season
The government’s subsidy decision comes as fertiliser inventories have increased substantially compared with the previous year.
India’s total fertiliser stocks stood at 235.21 lakh tonnes on November 10, 2026, up 35.6% from 173.46 lakh tonnes on the same date last year.
The increase provides a larger inventory base as farmers prepare for the rabi cropping season.
| Fertiliser category | Stock on November 10, 2026 | Year-on-year change |
|---|---|---|
| Total fertiliser stocks | 235.21 lakh tonnes | +35.6% |
| Urea | 103.12 lakh tonnes | Nearly +43% |
| NPK | 60.87 lakh tonnes | +43.4% |
| DAP | 28.65 lakh tonnes | +15.2% |
| Muriate of potash (MOP) | 20.08 lakh tonnes | +86.3% |
| Single superphosphate (SSP) | 22.49 lakh tonnes | -3.2% |
Urea accounted for approximately half of the overall increase in fertiliser stocks. NPK and MOP inventories also recorded substantial growth, while SSP stocks declined slightly.
The stock figures provide an indication of availability at the national level, although distribution across states and timely delivery to individual farming regions will remain important.
Why Global Fertiliser Prices Are Rising
India’s fertiliser industry is closely connected to international markets because the country imports fertilisers and key raw materials used in domestic production.
Geopolitical disruptions can affect the availability and cost of products such as phosphates, potash, natural gas and other industrial inputs.
The Russia-Ukraine war has affected global commodity and energy markets, while instability in West Asia has created additional uncertainty around shipping routes and supply chains.
Higher international prices increase the cost of importing fertilisers and manufacturing them domestically.
For a country with a large agricultural sector, these developments can create pressure on both farmers and public finances.
The latest subsidy increase is intended to manage that pressure by keeping eligible fertilisers affordable while ensuring manufacturers and importers receive the support required to maintain supplies.
What the Subsidy Decision Means for Farmers and the Fertiliser Industry
For farmers, the immediate benefit is greater protection from rising global fertiliser prices. Retaining the DAP price at ₹1,350 per 50 kg bag provides some certainty about a major agricultural input during the rabi season.
For fertiliser manufacturers and importers, the revised subsidy rates provide a clearer framework for supplying eligible products during the October-March period.
The decision also has implications for government finances. A larger subsidy requirement increases public expenditure, particularly when international prices remain elevated.
The effectiveness of the programme will depend on the timely release of subsidy payments, adequate product availability and distribution through the agricultural supply network.
The Bigger Picture
The increase in the rabi fertiliser subsidy highlights India’s exposure to international agricultural input markets. While domestic farmers benefit from government support, the country remains vulnerable to fluctuations in global fertiliser prices, energy costs and geopolitical disruptions. The larger allocation is intended to prevent these external pressures from translating directly into higher fertiliser costs for farmers.
At the same time, the decision increases the government’s subsidy burden. Maintaining affordable fertiliser prices is important for agricultural production, but long-term resilience will also depend on improving domestic manufacturing, diversifying imports, strengthening supply chains and encouraging balanced nutrient use. The challenge is to protect farmers while managing the financial sustainability of the subsidy programme.
Looking Ahead
The revised NBS rates will remain applicable until March 31, 2027, and the government will monitor international prices and fertiliser availability during the season. The increase in national stocks provides a stronger starting inventory, but the distribution of fertilisers across agricultural states will be important as sowing progresses. Farmers and industry participants will also watch whether global prices stabilise or create additional pressure on subsidy requirements.
For the government, the key task will be balancing affordable fertiliser supplies with the rising cost of public support. The ₹62,370 crore rabi allocation provides a financial cushion against current international price pressures, but future subsidy requirements will depend on commodity markets, import costs and domestic production. The longer-term objective will be to maintain agricultural input affordability without allowing fertiliser subsidies to become an increasingly difficult burden on public finances.
SEO Metadata
SEO Title: Cabinet Approves ₹62,370 Crore Rabi Fertiliser Subsidy for FY27
Meta Description: The Cabinet approves ₹62,370 crore in P&K fertiliser subsidies for Rabi 2026-27, a 64% increase, while retaining DAP at ₹1,350 per 50 kg bag.
URL Slug: cabinet-approves-rabi-fertiliser-subsidy-62370-crore-fy27
Focus Keyphrase: Rabi fertiliser subsidy 2026-27
Secondary Keywords: ₹62,370 crore fertiliser subsidy, Nutrient Based Subsidy scheme, DAP price India, P&K fertiliser subsidy, fertiliser stocks India, Rabi season 2026-27
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
