The Union Cabinet has approved a fertiliser subsidy package of ₹62,370 crore for the Rabi 2026-27 season. This represents a 64 per cent increase compared to the ₹37,952 crore allocated for the previous Rabi season.
The package includes Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the period spanning October 1, 2026, to March 31, 2027. It also incorporates special assistance for Di-ammonium Phosphate (DAP), extensions to Triple Superphosphate (TSP) and Monoammonium Phosphate (MAP), freight subsidies for Single Superphosphate (SSP), and the continuation of subsidies on ammonium sulphate.
According to the government, the enhanced outlay comes in response to global fertiliser price volatility and disruptions stemming from the West Asia crisis. The package is designed to ensure adequate availability of fertilisers during the Rabi season while keeping input costs stable for farmers.
Under the approved NBS rates, the subsidy has been fixed at ₹94.21 per kg for nitrogen, ₹66.11 per kg for phosphorus, ₹2.38 per kg for potash, and ₹10.42 per kg for sulphur.
The government will maintain special provisions beyond the NBS framework to keep DAP available at a fixed price of ₹1,350 per bag. These provisions have also been extended to imported and domestic TSP as well as imported MAP. Additionally, freight subsidies on SSP and subsidies on imported and domestic ammonium sulphate will continue through the season.
To strengthen domestic production and reduce import reliance, the Cabinet approved a sulphur package for domestic manufacturers. Manufacturers will receive 20 per cent of the actual procurement cost of sulphur, subject to a floor price of $800 per tonne. For sulphuric acid, the assistance will be set at 20 per cent of the actual procurement cost, with a floor price of $266.67 per tonne. The Department of Fertilisers will issue detailed guidelines shortly.
The administration expects these measures to revive domestic manufacturing, reduce import dependence, and promote alternative fertilisers such as SSP in place of DAP and ammonium sulphate in place of urea, thereby encouraging balanced nutrient application.
Data released alongside the announcement indicates that total fertiliser stocks in the country stood at 235.21 lakh tonnes as of November 10, 2026, compared to 173.46 lakh tonnes during the same period last year. Urea stocks reached 103.12 lakh tonnes, DAP stocks rose to 28.65 lakh tonnes, NPK stocks increased to 60.87 lakh tonnes, and MOP stocks nearly doubled to 20.08 lakh tonnes. SSP stocks remained marginally lower at 22.49 lakh tonnes.
"The significant 64 percent increase in the fertiliser subsidy outlay highlights the government's proactive approach to neutralizing global supply chain shocks and price volatility. By insulating farmers from external cost pressures and supporting domestic manufacturers, this policy provides critical cost visibility and stability for the agricultural sector, which remains a foundational pillar of the broader economy." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
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