Overview
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal from the Department of Fertilizers to fix the Nutrient Based Subsidy (NBS) rates for the Rabi Season 2025-26. This decision, announced on October 28, 2025, aims to ensure the availability of Phosphatic and Potassic (P&K) fertilizers to farmers at subsidized prices.
Key Developments
Subsidy Rates and Budgetary Allocation
- Rabi Season 2025-26: The approved NBS rates will be applicable from 01.10.2025 to 31.03.2026.
- Budgetary Requirement: The tentative budgetary requirement for the Rabi season 2025-26 is approximately Rs. 37,952.29 crore.
- Increased Allocation: This allocation is approximately Rs. 736 crore more than the budgetary requirement for the Kharif season 2025, indicating an increased focus on fertilizer availability.
Fertilizers Covered
- P&K Fertilizers: The subsidy will be provided on P&K fertilizers, including Di Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades.
- Affordable Prices: The goal is to ensure the smooth availability of these fertilizers to farmers at affordable prices.
Benefits
- Subsidized Prices: Farmers will have access to fertilizers at subsidized, affordable, and reasonable prices.
- Rationalization of Subsidy: The subsidy on P&K fertilizers will be rationalized in view of recent trends in the international prices of fertilizers and inputs.
Background
The government is committed to making 28 grades of P&K fertilizers, including DAP, available to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by the NBS Scheme, which has been in effect since 01.04.2010.
Government Commitment
In line with its farmer-friendly approach, the government is committed to ensuring the availability of P&K fertilizers to farmers at affordable prices. This decision to approve the NBS rates for Rabi 2025-26 is influenced by recent trends in the international prices of fertilizers and inputs like Urea, DAP, MOP, and Sulphur.
Subsidy Disbursement
The subsidy will be provided to the fertilizer companies as per approved and notified rates, ensuring that fertilizers are made available to farmers at affordable prices.
Exam Relevance
This announcement is relevant to GS3 (Economy, Agriculture) and GS2 (Government Policies). It highlights the government's efforts to support the agricultural sector by providing subsidized fertilizers to farmers. Understanding the NBS scheme and its impact on fertilizer availability and pricing is crucial for the UPSC exam.
Key Terms for UPSC
- Nutrient Based Subsidy (NBS): A scheme to provide subsidies on fertilizers based on their nutrient content.
- Rabi Season: The winter cropping season in India.
- Phosphatic and Potassic (P&K) fertilizers: Fertilizers containing phosphorus and potassium, essential nutrients for plant growth.
- Di Ammonium Phosphate (DAP): A widely used phosphatic fertilizer.
- NPKS: Fertilizers containing Nitrogen, Phosphorus, Potash, and Sulphur.