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Why the rabi fertiliser subsidy jumps to ₹62,370 crore: what the Cabinet approved and what it means for farmers
The nutrient-based subsidy for the 2026–27 rabi season is about 64% higher than last year’s budget. Here is what it covers and what the government has not said.
The Union Cabinet has approved the nutrient-based subsidy (NBS) for the rabi season 2026–27, with a requirement of about ₹62,370 crore. This explainer sets out what that means, using only what the government has published.
1. The numbers
| Amount | |
|---|---|
| Rabi 2025–26 budget | ₹37,952.29 crore |
| Rabi 2026–27 requirement | ₹62,370.02 crore |
| Increase | about ₹24,418 crore |
That is roughly 64% more than last year’s rabi budget (BDT’s calculation from the two figures above).
2. What the subsidy is
The NBS scheme has been in force since 1 April 2010. Instead of fixing a price for each fertiliser, the government sets a subsidy per kilogram of each nutrient (nitrogen, phosphorus, potash, sulphur), and companies price their products within that framework. The rates approved now apply to phosphatic and potassic (P&K) fertilisers from 1 October 2026 to 31 March 2027.
3. What it covers
The release says the subsidy covers 28 grades of P&K fertilisers, including DAP and NPKS grades, supplied through manufacturers and importers.
4. Why it rose
The government says the subsidy keeps fertilisers available to farmers at affordable prices and rationalises support "in view of recent trends in international prices of fertilisers and their inputs". It does not give a breakdown of how much of the rise comes from which product.
5. What the release does not say
- The per-tonne subsidy rate for each nutrient is not given in the release.
- It does not say how retail prices for farmers will change.
BDT will update this explainer when the notified rates are published. See also BDT’s explainer on why retail inflation is 6.09%.
This is an explainer, not financial advice.
How we verified this
VerifiedAll figures are from the PIB Cabinet release of 11 Nov 2026. The 64% increase is BDT arithmetic: 24,418 / 37,952.29. The release states the government’s reason as recent trends in international prices of fertilisers and their inputs; it does not give per-tonne rates, so none are stated here. The one-paragraph description of how NBS works (a per-kilogram subsidy on nutrients) is general background on the scheme, not a figure from the release.
Sources
- 1.Cabinet approves Nutrient Based Subsidy (NBS) rates for Rabi 2026-27 on P&K fertilizers — Cabinet / Press Information Bureau
