Cabinet Approves NBS Rates for Rabi 2025–26 Fertilisers

In a major step to ensure the availability of affordable fertilisers during the upcoming cropping season, the Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for Rabi 2025–26 on Phosphatic and Potassic (P&K) fertilisers. The subsidy will be in effect from 1 October 2025 to 31 March 2026, covering key fertiliser types including Di-Ammonium Phosphate (DAP) and NPKS grades (Nitrogen, Phosphorus, Potash, Sulphur).

Approved Subsidy Details

• The Cabinet sanctioned a tentative budget of ₹37,952.29 crore for implementing the NBS scheme in the Rabi season.
• This amount is approximately ₹736 crore higher than the subsidy provided for the Kharif 2025 season, indicating a response to shifting international fertiliser input prices.
• The subsidy covers 28 grades of P&K fertilisers, ensuring that manufacturers and importers can supply them to farmers at reasonable, subsidised prices.
• The approved rates will be applicable throughout the Rabi cropping cycle to support agricultural operations across the country.

Background: What Is the Nutrient Based System Scheme?

• The Nutrient Based Subsidy Scheme, launched on 1 April 2010, aims to provide targeted subsidies on P&K fertilisers.
• Unlike a fixed-price subsidy, this scheme offers per-kg subsidy rates for nutrients like nitrogen (N), phosphorus (P), potash (K), and sulphur (S).
• These rates are periodically reviewed based on market dynamics.
• Under this system, fertiliser companies receive subsidies directly, and farmers access fertilisers at lower market prices, encouraging balanced fertiliser use and more sustainable nutrient management.

Key Benefits for Farmers

• By maintaining affordability and supply of fertilisers, this policy decision directly supports farmers preparing for Rabi sowing, especially crops like wheat, barley, mustard, and pulses, which require timely and adequate nutrient inputs.

The benefits include,

• Continued availability of key fertilisers at subsidised rates.
• Reduced input cost pressure on farmers, especially smallholders.
• Stabilised fertiliser markets, supporting uninterrupted crop cycles.
• Policy alignment with international price shifts, ensuring sustainability.

Static Takeaways

• Nutrient Based Subsidy (NBS) Scheme launched on 1 April 2010.
• Applicable to Phosphatic and Potassic (P&K) fertilisers, including DAP and NPKS grades.
• Subsidy covers Rabi 2025–26 season: 1 October 2025 to 31 March 2026.
• Budget approved: ₹37,952.29 crore.
• Increase of ₹736 crore compared to Kharif 2025 subsidy.
• 28 grades of fertilisers are subsidised under NBS.
• Implemented by the Department of Fertilizers, Ministry of Chemicals and Fertilizers