The Union Cabinet has approved a provisional fertiliser subsidy allocation of ₹62,370.02 crore for the rabi 2026-27 season, an increase of approximately 64% from the ₹37,952.29 crore allocated for the corresponding period last year.
The approved Nutrient Based Subsidy rates will apply to phosphatic and potassic fertilisers from October 1, 2026, to March 31, 2027. The additional allocation of approximately ₹24,417.73 crore is intended to help protect farmers from elevated global fertiliser prices.
Higher nutrient subsidy rates approved
Under the revised structure, the subsidy rate for nitrogen has been increased to ₹94.21 per kg from ₹43.02 previously. The phosphorus subsidy has been raised to ₹66.11 per kg from ₹47.96. The approved rates for potash and sulphur stand at ₹2.38 and ₹10.42 per kg, respectively.
Union Minister Ashwini Vaishnaw attributed the increase in global fertiliser prices to the West Asia crisis and the Russia-Ukraine war. He said the government was seeking to shield farmers from geopolitical disruptions.
The government will also provide additional support to keep Di-Ammonium Phosphate, or DAP, prices unchanged at ₹1,350 per 50 kg bag. The special support covers triple superphosphate and imported monoammonium phosphate. Freight subsidy for single superphosphate and subsidy for ammonium sulphate will continue.
Additional support for fertiliser supply
A separate sulphur package will reimburse domestic manufacturers for 20% of their sulphur procurement costs, subject to a floor price of $800 per tonne. Under the Nutrient Based Subsidy scheme, subsidies are provided to manufacturers and importers supplying 28 grades of phosphatic and potassic fertilisers. The scheme has been operational since April 2010.
The announcement was followed by gains in fertiliser company shares, which rose as much as 9%. India’s fertiliser stocks stood at 235.21 lakh tonnes on November 10, compared with 173.46 lakh tonnes a year earlier. DAP inventories were 28.65 lakh tonnes, against 24.86 lakh tonnes in the same period last year.
How much fertiliser subsidy has the Cabinet approved for rabi 2026-27?
The Union Cabinet approved a provisional subsidy allocation of ₹62,370.02 crore.
How much higher is the allocation compared with last year?
The allocation is approximately 64% higher than the ₹37,952.29 crore approved for rabi 2025-26.
What is the approved subsidy period?
The revised Nutrient Based Subsidy rates apply from October 1, 2026, to March 31, 2027.
Will DAP prices increase?
The government will provide additional support to keep DAP prices unchanged at ₹1,350 per 50 kg bag.
How did fertiliser stocks react to the announcement?
Fertiliser company shares gained as much as 9% following the Cabinet’s decision.
