Indian Cabinet Approves ₹41,534 Crore Subsidy for Phosphatic and Potassic Fertilizers for Kharif 2026 Season

Government Approves Rs 41,534 Crore Subsidy for P&K Fertilizers for 2025-26 Kharif Season

The government has approved a subsidy of Rs 41,534 crore for Phosphatic and Potassic (P&K) fertilizers for the upcoming 2025-26 kharif season, marking a 12 per cent increase from the year-ago period.

A meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the subsidy rates effective from April 1 till September 30, 2026. The kharif (summer) crop planting begins with the onset of southwest monsoon from June.

The government has fixed the subsidy rate for nitrogen at Rs 47.32 per kg, phosphate at Rs 52.76/kg, potash Rs 2.38/kg and sulphur at Rs 3.16/kg for the kharif 2026 season. In comparison to the previous season, the subsidy rate for nitrogen, phosphate, and sulphur fertilisers has been increased, while the subsidy rate for potash has been kept unchanged from the 2025 rabi season.

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The subsidy on P&K fertilizers is being governed by the Nutrient Based Subsidy (NBS) scheme, which has been in effect since April 2010. Subsidy is given for 28 grades of P&K fertilizers. Retail prices of non-urea fertilizers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP), and Nitrogen, Phosphate, Potash (NPK) are decontrolled and determined by manufacturers, while the Centre gives them fixed subsidies each year.

The budgetary allocation for the NBS and urea subsidy scheme for FY 2026–27 (which covers kharif 2026 and rabi 2026–27) is about Rs 1,70,799 crore.