The Union Cabinet has approved the proposal from the Department of Fertilizers to fix the Nutrient Based Subsidy (NBS) rates for the Rabi Season 2025-26. This subsidy framework will be applicable from October 1, 2025, to March 31, 2026. A press release on this approval was issued on October 28, 2025.
The tentative budgetary requirement for this Rabi season is approximately Rs 37,952.29 crore. This amount represents an increase of approximately Rs 736 crore compared to the budgetary requirement approved for the Kharif season 2025.
Subsidy Details and Goals
The subsidy will be provided for Phosphatic and Potassic (P&K) fertilizers, including Di Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades. The core objective of providing this support is to ensure the smooth availability of these fertilizers to farmers at affordable prices.
The government’s decision involves the rationalization of the subsidy on P&K fertilizers in light of recent trends observed in the international prices of fertilizers and raw inputs. The subsidy would be provided directly to fertilizer manufacturers and importers according to the approved and notified rates.
Background on the NBS Scheme
The Government of India makes 28 grades of P&K fertilizers, including DAP, available to farmers at subsidized prices. This subsidy mechanism has been governed by the Nutrient Based Subsidy (NBS) Scheme since April 1, 2010.
In line with its farmer-friendly approach, the government remains committed to ensuring the continuous availability of P&K fertilizers to farmers at reasonable prices. The approval of these rates for Rabi 2025-26 is a result of reviewing recent international price trends for key inputs such as Urea, DAP, MOP, and Sulphur.
Benefits
The approval is expected to deliver the following benefits:
- Assurance of fertilizer availability to farmers at subsidized, affordable, and reasonable prices.
- Rationalization of subsidy amounts based on global market fluctuations for fertilizers and inputs.