12% hike approved in subsidy for P&K fertilisers
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved a 12 per cent hike in subsidy for Phosphatic and Potassic (P&K) fertilisers for the Kharif 2026 season to INR 41,534 crore in order to insulate farmers from rising global prices amid the West Asia conflict.The subsidy for P&K fertilisers for the Kharif 2025 season was INR 37,216 crore.
The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, fixed subsidy rates effective April 1 to September 30, 2026.For Kharif 2026, the government has set a subsidy for nitrogen at INR 47.32 per kg (up from INR 43.02 per kg in Rabi 2025-26), phosphate at INR 52.76 per kg against INR 47.96 per kg, and sulphur at INR 3.16 per kg against INR 2.87 per kg. The potash subsidy has been held steady at INR 2.38 per kg.
Subsidy is extended across 28 grades of P&K fertilisers under the Nutrient Based Subsidy (NBS) scheme, in force since April 2010.“The subsidy has been increased by INR 4,317 crore over the Kharif 2025 season,” Information and Broadcasting Minister Ashwini Vaishnaw told reporters. Despite a sharp increase in Di-ammonium Phosphate (DAP) prices in international markets since the Covid years, the minister said the retail price for farmers has been held at INR 1,350 for a 50-kg bag.
Be it the Covid years or the West Asia crisis, the Prime Minister has remained as a safety shield for farmers, insulating farmers from global price volatility, he added.
The Cabinet also approved a set of additional measures: provisions to manage global price volatility, extension of similar safeguards to imported Triple Super Phosphate (TSP) to ensure supply stability, continuation of freight subsidy for Single Super Phosphate (SSP), and inclusion of both imported and domestically manufactured Ammonium Sulphate under the NBS scheme for Kharif 2026.
Kharif sowing typically begins with the onset of the southwest monsoon in June.The total budgetary allocation for the NBS and urea subsidy scheme for FY 2026-27 - covering both Kharif 2026 and Rabi 2026-27 — stands at INR 1,70,799 crore.
Retail prices of non-urea fertilisers 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 those fixed subsidies each year.
