 (6).png)
3 hours ago
1
ARTICLE AD BOX
The Union cabinet has approved higher nutrient-based subsidy for phosphatic and potassic fertilizers amid rising input costs and supply uncertainties linked to the West Asia war.
The budgetary requirement for the kharif fertilizer subsidy in 2026 is about ₹4,317 crore higher than the ₹37,216.15 crore allocated for kharif 2025. (Mint)NEW DELHI: The Union cabinet on Wednesday approved nutrient-based subsidy (NBS) rates worth about ₹41,533.81 crore for phosphatic and potassic (P&K) fertilizers for the upcoming kharif season, raising support as global fertilizer prices remain volatile.
The budgetary requirement for the kharif fertilizer subsidy in 2026 is about ₹4,317 crore higher than the ₹37,216.15 crore allocated for kharif 2025. It is also roughly ₹3,582 crore more than the subsidy requirement for the rabi 2025-26 season.
"Under the Nutrient Based Subsidy (NBS) scheme for our 'Annadatas' and farmer brothers, a complete subsidy programme worth ₹41,534 crore has been approved today for farmers for the Kharif season," Union minister Ashwini Vaishnaw told reporters after the cabinet meeting.
The increase in allocation is aimed at ensuring fertilizers remain available to farmers at affordable prices even as international prices of key inputs such as diammonium phosphate (DAP) and muriate of potash (MOP) remain elevated.
The war in West Asia has added to supply uncertainties in fertilizer and energy markets.
India is the world’s largest importer of diammonium phosphate and a major buyer of other fertilizers. As the second-largest agricultural producer globally, it meets around 60% of its DAP requirement and about 15% of its urea and NPK fertilizer demand through imports.
West Asia meets about 30% of India's urea needs, 30% of di-ammonium phosphate (DAP) demand and 50% of LNG (liquefied natural gas) requirement, which is used for production of fertilizers.
The government currently provides 28 grades of phosphatic and potassic fertilizers, including DAP, to farmers at subsidized rates through manufacturers and importers under the nutrient-based subsidy scheme, which has been in force since April 2010.
"An increase in NBS acts as both a price shield and productivity booster, helping farmers manage costs while sustaining crop output. Higher subsidy means the government bears a larger share of the cost, keeping retail prices of fertilizers like DAP and NPK stable or lower despite global price rises," said Devender Sharma, a farm policy expert.
The subsidy rates approved for the kharif 2026 season will be applicable from 1 April 2026 to 30 September for phosphatic and potassic fertilizers, including DAP and various NPKS grades. The subsidy will be released to fertilizer companies based on the notified rates to ensure farmers continue to receive fertilisers at reasonable prices.
The government has projected a total fertilizer subsidy of ₹1.71 trillion for FY27, lower than the revised estimate of ₹1.86 trillion for FY26 as it seeks to tighten overall spending.
Other decisions
The Union cabinet also approved the revision of project cost of HPCL Rajasthan Refinery Ltd, from ₹43,129 crore to ₹79,459 crore, along with an additional equity investment of ₹8,962 crore by Hindustan Petroleum Corp. Ltd.
It also cleared two hydroelectric projects in Arunachal Pradesh — the ₹26,069.50 crore Kamala Hydro Electric Project and the ₹14,105.83 crore Kalai-II Hydro Electric Project.
Additionally, it approved Jaipur Metro Phase-2, a 41-km north–south corridor with 36 stations, at a total project cost of ₹13,037.66 crore.
About the Authors
Harsh Kumar
Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.
Vijay C Roy
Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.
English (US) ·