Cabinet Approves Rs 41,534 Cr Fertiliser Subsidy For Kharif Season

(MENAFN- KNN India) New Delhi, Apr 8 (KNN) Amid West Asia crisis which has hurt fertilizer supplies and pushed up prices globally, Prime Minister Narendra Modi-led Union Cabinet on Wednesday approved the nutrient based subsidy (NBS) rates for kharif cropping season 2026 on phosphatic and potassic (P&K) fertilizersa entailing a subsidy outlay of Rs 41,533.81 crore.

"The tentative budgetary requirement for Kharif season 2026 would be approximately Rs 41,533.81 crore. This is approximately Rs 4,317 crore more than the budgetary requirement for the Kharif 2025 season. The budget for Kharif 2025 was Rs 37,216.15 crore," an official release said.

The government statement said that availability of fertilizers to farmers at subsidized, affordable and reasonable prices will be ensured even as prices remain volatile internationally in the wake of escalating geopolitical tensions.

Under the approved framework, subsidy on P&K fertilisers, including DAP and NPKS grades, will be provided based on notified rates for the Kharif 2026 season. This is intended to maintain steady supply and price stability for farmers during the cropping period.

The government currently provides 28 grades of P&K fertilisers, including DAP, at subsidised rates through manufacturers and importers. The subsidy is governed by the Nutrient Based Subsidy (NBS) scheme, which has been in effect since April 1, 2010, and is designed to promote balanced fertiliser use.

The Cabinet decision has taken into account recent trends in international prices of key inputs such as urea, DAP, MOP and sulphur.

The government said the subsidy will be disbursed to fertiliser companies as per approved rates to ensure that retail prices remain affordable for farmers.

(KNN Bureau)

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