Cabinet approves ₹41,534 cr P&K fertilizer subsidy for kharif 2026, 12 % higher than last year

The Union Cabinet on Wednesday approved a ₹41,534 crore Nutrient Based Subsidy (NBS) package for phosphatic and potassic (P&K) fertilizers for the kharif 2026 season, marking a 12 per cent increase or ₹4,317 crore more than the kharif 2025 subsidy of ₹37,217 crore. The subsidy rates are effective from April 1 to September 30, 2026, giving manufacturers, distributors, and state authorities time to plan procurement and ensure timely availability, although actual fertilizer use by farmers will peak during the kharif sowing period, which begins with the southwest monsoon in June . The decision, taken at a meeting chaired by Prime Minister Narendra Modi , aims to strengthen farm input affordability ahead of the summer planting season.

The revised subsidy rates are ₹47.32 per kg for nitrogen, ₹52.76 per kg for phosphate, ₹2.38 per kg for potash, and ₹3.16 per kg for sulphur. While nitrogen, phosphate and sulphur rates have been raised from the rabi 2025–26 season, the potash subsidy remains unchanged. Retail prices of non-urea fertilizers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP), and NPK blends are decontrolled, with the Centre providing fixed subsidies to farmers.

The NBS scheme, introduced in 2010, covers 28 grades of P&K fertilizers and aims at balanced nutrient use and soil health improvement. It benefits farmers nationwide, though high-cultivation states such as Uttar Pradesh, Punjab, Haryana, Andhra Pradesh, Tamil Nadu, and Karnataka effectively receive a larger share of subsidies due to higher consumption and crop intensity. States with smaller cropped areas receive proportionally lower allocations.

The subsidy also ensures that DAP and other key fertilizers are available at controlled prices , helping small and marginal farmers manage input costs. Distribution is managed through state cooperatives and networks to prevent delays and hoarding , ensuring timely supply ahead of kharif planting.

For the 2026-27 fiscal year , encompassing both kharif 2026 and rabi 2026-27 , the overall budgetary allocation for fertilizer subsidies, including NBS and urea, is about ₹1,70,799 crore, reflecting the government’s commitment to agricultural productivity and food security.