The Union Cabinet on Tuesday raised the subsidy on phosphorous (P) and sulphur (S) fertilisers by about ₹14,000 crore for the ongoing 2025-26 rabi season.
The Cabinet, headed by Prime Minister Narendra Modi, increased the subsidy for phosphate to ₹47.96 per kg for the ongoing rabi season from ₹43.60 per kg in the 2025 kharif season. Similarly, the subsidy for sulphur was raised to ₹2.87 per kg from ₹1.77 per kg for the period under review.
A higher subsidy allocation of ₹37,952 crore under the Nutrient Based Subsidy (NBS) Scheme for the 2025-26 rabi season is to provide relief to the farming community, said Ashwini Vaishnaw, Union Minister of Information and Broadcasting.
The new rates will be effective from October 1, 2025 till March 31, 2026.
However, the subsidy rate for nitrogen (N) and potash (K) were kept unchanged at ₹43.02 per kg and ₹2.38 per kg, respectively.
“The subsidy approved for 2025 rabi season is higher by about ₹14,000 crore from the previous rabi season (2024). During the last rabi season, the subsidy was about ₹24,000 crore,” Vaishnaw added.
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The NBS Scheme is a central government initiative that has been effective since April, 2010, providing subsidies for non-urea fertilisers based on their nutrient content – specifically nitrogen, phosphate, potash, and sulphur.
Only phosphatic and potassic fertilisers (28-plus grades including DAP, MOP, SSP, NPK, and complexes), except urea, are covered under NBS.
The subsidies are paid directly to fertiliser companies, enabling them to sell fertilisers to farmers at affordable prices.
Meanwhile, the current subsidy rate has been fixed based on the import price and other factors like nutrient requirement, subsidy burden and maximum retail price (MRP), Vaishnaw said.
The government’s stimulus to farmers includes a special package to ensure the availability of di-ammonium phosphate (DAP) and triple super phosphate (TSP) without any increased MRP.
“DAP and TSP are highly consumed fertilisers. The increase in subsidy rate will benefit farmers in the rabi season,” the minister said, adding that the government is “bearing the burden to ensure retail prices of these fertilisers do not rise”.
Prices of phosphorous and sulphur have increased up to 10 per cent from previous levels, while nitrogen and potash are at the same level, he added.
The government determines subsidy per kilogram for each nutrient contained in P&K fertilisers, with rates announced annually or bi-annually based on global and domestic prices, inventory, and currency exchange rates.
It also provides freight subsidies for transport and distribution of these fertilisers.
Rabi (winter) sowing has started in many parts of the country. Wheat, mustard seed and gram are the main crops grown in this season.
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