Understanding the Nutrient-Based Subsidy Rates for Rabi 2025-26

Understanding the Nutrient-Based Subsidy for Rabi 2025-26

In January 2025, the Government of India approved the Nutrient-Based Subsidy (NBS) rates for the Rabi 2025–26 season. This initiative aims to ensure that Indian farmers have continued access to affordable and balanced fertilizers. The approved rates will be effective from 1 October 2025 to 31 March 2026, specifically for Phosphatic and Potassic (P&K) fertilizers, including Di-Ammonium Phosphate (DAP) and various NPKS grades.

This decision highlights the government's commitment to protecting farmers from global price volatility, promoting soil health, and sustaining agricultural productivity, particularly during the crucial Rabi cropping season.

What is the Nutrient-Based Subsidy (NBS) Scheme?

The Nutrient-Based Subsidy (NBS) Scheme, launched on 1 April 2010, is a critical fertilizer reform initiative. Its primary goal is to discourage excessive nitrogen use while promoting balanced nutrient application in Indian agriculture. Key features of the scheme include:

• The government provides a fixed per-kg subsidy on essential nutrients: Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S).
• Subsidy rates are reviewed annually or biannually based on global pricing and domestic needs.
• Fertilizers are subsidized based on their nutrient composition rather than brand or price, ensuring farmers have flexibility and efficiency in the fertilizer market.

Expanded Fertilizer Coverage Under NBS

The NBS framework has seen a steady expansion:

• Initially, 25 fertilizer grades were covered, which has now increased to 28 P&K fertilizer grades available at subsidized prices.
• New grades added from Kharif 2024 onwards include:
  • NPK (11:30:14) fortified with Magnesium, Zinc, Boron, and Sulphur
  • Urea-SSP (5:15:0:10)
  • SSP (0:16:0:11) fortified with Magnesium, Zinc, and Boron
• For Rabi 2025–26, Ammonium Sulphate ((NH₄)₂SO₄) has been included under the NBS scheme for the first time, enhancing sulphur availability for crops.

NBS Rates for Rabi 2025–26

The following are the per kg subsidy rates:

• Nitrogen (N): ₹43.02/kg
• Phosphorus (P): ₹47.96/kg
• Potassium (K): ₹2.38/kg
• Sulphur (S): ₹2.87/kg

These rates are designed to stabilize fertilizer prices and support farmers despite fluctuations in international markets.

DAP Subsidy: Major Boost for Farmers

To alleviate the impact of rising global fertilizer prices on farmers, the government has significantly raised the subsidy on DAP:

• Rabi 2024–25: ₹21,911 per MT
• Rabi 2025–26: ₹29,805 per MT

Compliance and Regulatory Framework

The NBS scheme operates within a decontrolled P&K sector, subject to strict government oversight:

• Companies determine the Maximum Retail Price (MRP) under government monitoring.
• Profit margin caps are set at 8% for importers, 10% for manufacturers, and 12% for integrated units.
• Mandatory display of MRP and subsidy on fertilizer bags is required.
• Penalties under the Essential Commodities Act, 1955 apply for overcharging.
• Fertilizer companies must submit audited cost data.

Budgetary Allocation for Rabi 2025–26

The total estimated requirement is ₹37,952.29 crore, which reflects an increase of approximately ₹736 crore compared to the Kharif 2025 allocation. This enhanced budget emphasizes the government’s priority on food security and farmer welfare.

Impact on Production and Productivity

Notable improvements in fertilizer production and food grain productivity have been observed:

• P&K fertilizer production rose over 50%, from 112.19 LMT in 2014 to 168.55 LMT in December 2025.
• Food grain productivity increased from 1,930 kg/ha in 2010–11 to 2,578 kg/ha in 2024–25.

Additionally, fortification incentives include:

• Boron-coated fertilizers: ₹300/MT incentive
• Zinc-coated fertilizers: ₹500/MT incentive

Digital Monitoring and Supply Management

The entire fertilizer ecosystem is overseen through the Integrated Fertilizer Management System (iFMS), which tracks:

• Production
• Movement
• Availability

Monthly supply planning and coordination with states ensure timely delivery to farmers, especially during peak sowing periods.