# Cabinet raises rabi P&K fertiliser subsidy 64% to ₹62,370 crore for 2026-27

URL: https://upsc.help/current-affairs/2026-11-12/nbs-rabi-2026-27-subsidy-hike/
Date: 12 November 2026 (2026-11-12)
Source: The Hindu, Page 13
UPSC papers: GS3, GS2
Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing.

**In one line:** The Centre has raised the subsidy on phosphatic and potassic fertilisers for rabi 2026-27 to ₹62,370.02 crore, about 64% more than last rabi, as world prices of DAP, potash and sulphur climb.

The Union Cabinet, chaired by Prime Minister Narendra Modi, on 11 November 2026 approved Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the rabi 2026-27 season, which runs from 1 October 2026 to 31 March 2027. The tentative budgetary requirement is ₹62,370.02 crore. That is ₹24,417.73 crore more than the ₹37,952.29 crore set aside for rabi 2025-26, an increase of about 64%. The Cabinet said the subsidy was being rationalised because of recent trends in international prices of urea, di-ammonium phosphate (DAP), muriate of potash (MOP) and sulphur. Information and Broadcasting Minister Ashwini Vaishnaw said the subsidy "will ensure smooth availability of these fertilizers to the farmers at affordable prices".

The per-kg rates show where the pressure lies. For rabi 2026-27 the subsidy is ₹94.21 per kg of nitrogen (N), ₹66.11 per kg of phosphorus (P), ₹2.38 per kg of potash (K) and ₹10.42 per kg of sulphur (S). For kharif 2026, approved on 8 April 2026 with an outlay of ₹41,534 crore, the rates were ₹47.32 (N), ₹52.76 (P), ₹2.38 (K) and ₹3.16 (S). So the nitrogen rate has roughly doubled in one season while potash is unchanged. Reports say the government aims to keep DAP at ₹1,350 per 50-kg bag through extra assistance. Domestic makers of sulphur-based fertilisers get help equal to 20% of their actual procurement cost, with floor prices of $800 a tonne for sulphur and $266.67 a tonne for sulphuric acid.

Under NBS, in force since 1 April 2010, the government fixes a subsidy per kg of each nutrient and pays it to manufacturers and importers, who then sell 28 grades of P&K fertilisers, including DAP, at subsidised prices. Urea is not covered by NBS. Reported stocks on 10 November 2026 were 235.21 lakh tonnes, against 173.46 lakh tonnes a year earlier, with only single super phosphate (SSP) lower. The Hindu reported that the higher outlay overshoots Budget estimates. Supporters see the decision as protecting farmers from a global price shock; the larger concern is that a fixed-rate subsidy now has to be reset sharply each season, which strains the fiscal plan and keeps the import bill exposed.

## Prelims facts

- The Cabinet approved NBS rates for rabi 2026-27 (1 October 2026 to 31 March 2027) with a tentative outlay of ₹62,370.02 crore, about 64% above rabi 2025-26.
- Rabi 2026-27 NBS rates are ₹94.21/kg for N, ₹66.11/kg for P, ₹2.38/kg for K and ₹10.42/kg for S; the kharif 2026 N rate was ₹47.32/kg.
- NBS has applied to P&K fertilisers since 1 April 2010; the subsidy is paid to companies, and 28 grades including DAP are covered. Urea is outside NBS.
- Sulphur and sulphuric acid makers get assistance of 20% of procurement cost, with floors of $800 and $266.67 a tonne.
- Reported fertiliser stocks on 10 November 2026 were 235.21 lakh tonnes against 173.46 lakh tonnes a year earlier.

## Quick recall

- **Since when have P&K fertilisers been under the Nutrient Based Subsidy scheme?** 1 April 2010.
- **Tentative NBS outlay for rabi 2026-27?** ₹62,370.02 crore, about 64% above rabi 2025-26 (₹37,952.29 crore).
- **NBS rate per kg of nitrogen for rabi 2026-27?** ₹94.21 per kg (kharif 2026: ₹47.32).
- **NBS rate per kg of potash for rabi 2026-27?** ₹2.38 per kg, unchanged from kharif 2026.
- **How many grades of P&K fertilisers are available at subsidised prices?** 28 grades, including DAP.
- **To whom is NBS subsidy paid?** To fertiliser manufacturers and importers, at the approved and notified rates.
- **Assistance to domestic sulphur and sulphuric acid makers?** 20% of actual procurement cost, with floors of $800/tonne (sulphur) and $266.67/tonne (sulphuric acid).
- **Rabi 2026-27 season dates for NBS rates?** 1 October 2026 to 31 March 2027.

## Prelims practice question

With reference to the Nutrient Based Subsidy (NBS) scheme in India, consider the following statements:
1. It fixes the subsidy on the basis of nutrients such as nitrogen, phosphorus, potash and sulphur.
2. It covers urea along with phosphatic and potassic fertilisers.
3. The subsidy is paid directly into the bank accounts of farmers.
Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (a) 1 only. Statement 1 is correct: NBS sets a per-kg subsidy for N, P, K and S. Statement 2 is wrong: NBS covers P&K fertilisers such as DAP and NPKS grades, not urea. Statement 3 is wrong: the subsidy is released to fertiliser companies at the notified rates, not to farmers.

## UPSC previous-year questions this connects to

- UPSC Mains 2026, GS3: Discuss the different types of subsidies and supports provided by the Government of India to agricultural sector. Examine the related issues pertaining to Agreement on Agriculture of World Trade Organisation (WTO). (https://upsc.help/pyq/q170-different-types-subsidies-supports-provided-government-india/)
  How to use this story in the answer: Use NBS as the leading example of an input subsidy, showing its design, its 2026-27 cost and why it raises fiscal and balance concerns.
- UPSC Mains 2023, GS3: What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies. (https://upsc.help/pyq/q169-direct-indirect-subsidies-provided-farm-sector-india/)
  How to use this story in the answer: Cite the rabi 2026-27 NBS outlay as an example of a large input subsidy whose cost depends on global prices.

## Mains practice question

The rabi 2026-27 fertiliser subsidy is about 64% higher than last year's. Examine how the Nutrient Based Subsidy scheme works and the fiscal and agronomic issues it raises. (250 words)

### Model answer

On 11 November 2026 the Cabinet approved Nutrient Based Subsidy (NBS) rates for rabi 2026-27 with a tentative outlay of ₹62,370.02 crore, about 64% more than the ₹37,952.29 crore of rabi 2025-26, citing global prices of DAP, MOP and sulphur.

## How NBS works
- Since 1 April 2010 the Centre fixes a per-kg subsidy on nitrogen, phosphorus, potash and sulphur for each season.
- The subsidy is paid to manufacturers and importers, who sell 28 P&K grades, including DAP, at subsidised prices.
- Rabi 2026-27 rates: ₹94.21/kg N, ₹66.11/kg P, ₹2.38/kg K, ₹10.42/kg S.
- Extra assistance aims to hold DAP at ₹1,350 per 50-kg bag; sulphur and sulphuric acid makers get 20% of procurement cost.

## Fiscal issues
- The N rate has roughly doubled from ₹47.32/kg in kharif 2026, so outlays swing with world prices.
- Kharif 2026 already needed ₹41,534 crore; the rabi figure reportedly overshoots Budget estimates.
- Import dependence for DAP, MOP and sulphur keeps the bill exposed to West Asian disruptions.

## Agronomic issues
- Urea is outside NBS, so relative prices can tilt farmers towards nitrogen and away from balanced use.
- Unchanged potash support (₹2.38/kg) can weaken the incentive to apply K.
- Stocks of 235.21 lakh tonnes on 10 November ease supply worries but not cost worries.

## Way forward
- Bring urea into a nutrient-based framework in stages.
- Expand domestic phosphate and sulphur capacity and long-term supply deals.
- Promote soil-test based balanced fertilisation.

NBS has shielded farmers from a price shock, but lasting relief needs lower import dependence and balanced nutrient use.

## The basics

## Why this matters
Fertiliser is the single largest farm input subsidy that the Centre pays out season by season. The rabi 2026-27 decision shows how a global price shock travels straight into the Union Budget, and why the design of the subsidy matters as much as its size.

## Two regimes for two kinds of fertiliser
India runs two different systems. Urea, the main nitrogen fertiliser, is sold at a price the government controls, and the subsidy covers the gap between cost and that price. Phosphatic and potassic (P&K) fertilisers such as DAP, MOP and NPK complexes have been under the Nutrient Based Subsidy scheme since 1 April 2010.

## How a season's rates are set
Every kharif (April to September) and rabi (October to March) season, the Cabinet fixes rupee rates per kg of each nutrient. A bag's subsidy is then the sum of its nutrient content multiplied by those rates.

## What changed this rabi
The nitrogen rate rose to ₹94.21 per kg, against ₹47.32 per kg in kharif 2026. Phosphorus rose from ₹52.76 to ₹66.11, sulphur from ₹3.16 to ₹10.42, while potash stayed at ₹2.38.

## The fiscal picture
The rabi outlay of ₹62,370.02 crore compares with ₹37,952.29 crore a year earlier. Added to the ₹41,534 crore approved for kharif 2026, P&K support alone crosses ₹1 lakh crore for 2026-27, before urea is counted.

## The bigger debate
Supporters say the fixed-per-nutrient design lets the government respond quickly and keeps prices stable for farmers. Critics point to Balanced fertilisation and the NPK ratio: as long as urea is cheap and outside NBS, farmers tend to overuse nitrogen. They also point to heavy Import dependence in fertilisers, which turns every West Asian disruption into a Budget problem. The deeper fix lies in Fertiliser subsidy and the Budget reform and domestic capacity.

## Sources

- https://www.pmindia.gov.in/en/news_updates/cabinet-approves-nutrient-based-subsidy-nbs-rates-for-rabi-2026-27-from-01-10-2026-to-31-03-2027-on-phosphatic-and-potassic-pk-fertilizers/
- https://www.businessworld.in/article/cabinet-clears-rs-62-370-cr-rabi-fertiliser-subsidy-keeps-dap-at-rs-1-350-633122
- https://www.tribuneindia.com/news/india/global-prices-bite-govt-hikes-rabi-fertiliser-subsidy-by-64/
- https://www.theweek.in/wire-updates/business/2026/04/08/cabinet-approves-rs-41-534-cr-p-k-fertilizers-subsidy-for-kharif-2026-season.html
- https://newsonair.gov.in/govt-approves-nutrient-based-subsidy-for-rabi-2026-27-to-ensure-affordable-fertilisers-for-farmers/