Government of India Approves Nutrient-Based Subsidy (NBS) Rates for Rabi 2025–26

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

This decision reflects the government’s commitment to protect farmers from global price volatility, promote soil health, and sustain agricultural productivity, especially during the critical Rabi cropping season.

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

The Nutrient-Based Subsidy (NBS) Scheme, launched on 1 April 2010, is a flagship fertilizer reform aimed at discouraging excessive nitrogen use and encouraging balanced nutrient application in Indian agriculture.

Under this scheme:

• The government provides a fixed per-kg subsidy on nutrients—Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S).
• Subsidy rates are revised annually or biannually based on global prices and domestic requirements.
• Fertilizers are subsidized according to their nutrient composition, not brand or price.

This approach empowers farmers while allowing flexibility and efficiency in the fertilizer market.

Expanded Fertilizer Coverage Under NBS

The NBS framework has expanded steadily:

• Initially: 25 fertilizer grades
• Currently: 28 P&K fertilizer grades available at subsidized prices

New Grades Added (From Kharif 2024 onwards)

• NPK (11:30:14) fortified with Magnesium, Zinc, Boron & Sulphur
• Urea-SSP (5:15:0:10)
• SSP (0:16:0:11) fortified with Magnesium, Zinc & Boron

New Inclusion for Rabi 2025–26

• Ammonium Sulphate ((NH₄)₂SO₄) has been included under the NBS scheme for the first time, expanding sulphur availability for crops.

NBS Rates for Rabi 2025–26 (Per kg Subsidy)

• 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 keep fertilizer prices stable and farmer-friendly, despite fluctuations in international markets.

DAP Subsidy: Major Boost for Farmers

To shield farmers from rising global fertilizer prices, the government has significantly increased the subsidy on DAP:

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

Other Key Subsidized Fertilizers

• DAP (18-46-0-0): ₹29,805/MT
• MOP (0-0-60-0): ₹1,428/MT
• SSP (0-16-0-11): ₹7,408/MT

Compliance and Regulatory Framework

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

• Companies set MRP, subject to GoI monitoring

• Profit Margin Caps:

1. Importers: 8%
2. Manufacturers: 10%
3. Integrated units: 12%

• Mandatory display of MRP and subsidy on fertilizer bags
• Penalties under the Essential Commodities Act, 1955 for overcharging
• Submission of audited cost data by fertilizer companies

Budgetary Allocation for Rabi 2025–26

• Total Estimated Requirement: ₹37,952.29 crore
• Increase: ~₹736 crore higher than Kharif 2025 allocation

This enhanced allocation underlines the government’s priority on food security and farmer welfare.

Impact on Production and Productivity

Fertilizer Production

• P&K fertilizer production increased by over 50%
• From 112.19 LMT (2014) to 168.55 LMT (Dec 2025)

Foodgrain Productivity

• 2010–11: 1,930 kg/ha
• 2024–25: 2,578 kg/ha

Fortification Incentives

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

Digital Monitoring and Supply Management

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

• Production
• Movement
• Availability

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

About the Ministry of Chemicals and Fertilizers

• Union Minister: Jagat Prakash Nadda
• Minister of State: Anupriya Patel

Exam-Oriented Quick Facts (Prelims Ready)

• What: Approval of NBS rates for Rabi 2025–26
• Validity: 1 October 2025 – 31 March 2026
• Approved by: Government of India
• Ministry: Ministry of Chemicals and Fertilizers
• Implementing Department: Department of Fertilizers (DoF)
• Coverage: P&K fertilizers including DAP and NPKS grades
• Fertilizers Covered: 28 grades
• Estimated Budget: ₹37,952.29 crore
• NBS Scheme Launch: 1 April 2010
• Core Objective: Promote balanced fertilization and ensure affordable fertilizers