Cabinet approves Nutrient Based Subsidy (NBS) rates for Kharif Season, 2026 (from 01.04.2026 to 30.09.2026) on Phosphatic and Potassic (P&K) fertilizers

**Executive Summary** The Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the 2026 Kharif season, effective from April 1, 2026, to September 30, 2026. The initiative involves a tentative budgetary outlay of Rs. 41,533.81 crore, representing an increase of approximately Rs. 4,317 crore over the previous year. The primary objective is to ensure that farmers have access to 28 grades of subsidized fertilizers despite fluctuations in international prices. **Key Points / Main Content** **Subsidy Framework and Timeline** * Fixes NBS rates for P&K fertilizers for the duration of the Kharif 2026 season (01.04.2026 to 30.09.2026). * Governs 28 different grades of P&K fertilizers, including DAP and NPKS. * Maintains the NBS Scheme framework originally established on April 1, 2010. **Financial Allocation** * Allocates a tentative budget of Rs. 41,533.81 crore for the Kharif 2026 season. * Reflects a significant budgetary increase from the Rs. 37,216.15 crore allocated for the Kharif 2025 season. **Operational Strategy** * Provides subsidies directly to fertilizer manufacturers and importers at approved and notified rates. * Accounts for international price trends of essential inputs such as Urea, DAP, MOP, and Sulphur to stabilize domestic costs. * Aims to facilitate the smooth availability of essential nutrients to the agricultural sector at reasonable prices. **Impact Analysis** **Farmers** **Impact** Farmers will benefit from the continued availability of essential fertilizers at subsidized and affordable prices during the Kharif crop season. This protects them from the volatility of international fertilizer and input prices. **Action Required** No specific action is required other than procuring fertilizers through standard channels at the subsidized rates provided under the scheme. **Fertilizer Manufacturers and Importers** **Impact** These entities will receive subsidy payments from the government based on the newly approved and notified NBS rates for 28 grades of P&K fertilizers. **Action Required** Companies must ensure the consistent supply and distribution of fertilizers to the market at the prices determined by the subsidy framework. **Department of Fertilizers** **Impact** The Department is responsible for the implementation of the proposal and managing the increased budgetary requirement of Rs. 41,533.81 crore. **Action Required** The Department must notify the approved rates and oversee the disbursement of subsidies to manufacturers and importers to ensure the targets for the Kharif season are met.

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