Cabinet clears ₹41,534 crore fertiliser subsidy for Kharif 2026 season

The Union Cabinet on Wednesday approved the nutrient-based subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the 2026 kharif season, with an estimated outlay of ₹41,533.81 crore.

The approved subsidy will be applicable for the kharif season period from April 1 to September 30, 2026.

The government said the tentative budgetary requirement for the upcoming kharif season is about ₹41,533.81 crore, which is around ₹4,317 crore higher than the ₹37,216.15 crore allocated for the 2025 kharif season.

“The subsidy on P&K fertilizers including DAP and NPKS grades will be provided based on approved rates for Kharif 2026… to ensure smooth availability of these fertilizers to the farmers at affordable prices,” the statement said.

The move is aimed at ensuring the availability of fertilisers to farmers at “subsidised, affordable and reasonable prices”, while also rationalising subsidy levels in line with recent trends in global fertiliser and input prices.

The government currently provides 28 grades of P&K fertilisers, including di-ammonium phosphate (DAP), at subsidised rates through manufacturers and importers under the NBS scheme.

The NBS regime, in place since April 2010, determines subsidy rates based on the nutrient content of fertilisers and is intended to promote balanced use of plant nutrients.

“In view of the recent trends in the international prices of fertilizers and inputs like Urea, DAP, MOP and Sulphur, Government has decided to approve the NBS rates for Kharif 2026,” the statement added.

The subsidy will be released to fertiliser companies as per notified rates to ensure farmers continue to get key nutrients at affordable prices during the sowing season.

The government has ramped up natural gas supplies to urea plants by 23% and diversified fertiliser imports to ensure adequate availability for the Kharif 2026 season, insulating farmers from global supply disruptions amid the ongoing conflict in West Asia.

As of March 19, urea stocks stood at 61.14 lakh metric tonnes (LMT), higher than 55.22 LMT a year ago.

India also imports phosphatic fertilisers, including Di-Ammonium Phosphate (DAP) and NPK compounds.

Supplies of urea, DAP and NPK from Russia and Morocco are reportedly flowing uninterrupted via the Cape of Good Hope route.

Stocks of DAP more than doubled to 24.24 LMT from 11.85 LMT, while NPK stocks rose to 57.21 LMT from 34.44 LMT.

Single Super Phosphate (SSP) stocks also increased to 24.80 LMT from 23.15 LMT.

However, Muriate of Potassium (MOP), or potash, stocks dipped to 12.65 LMT from 14.13 LMT.

"Regarding our fertilizer situation at this point in time, especially for Kharif 2026, we have adequate stocks; we are comfortable,” Ministry of External Affairs spokesperson Randhir Jaiswal had said at an inter-ministerial press briefing.