Union Cabinet approved Nutrient-Based Subsidy (NBS) rates for the Rabi season 2025–26, applicable from 1 October 2025 to 31 March 2026. The decision covers Phosphatic & Potassic (P&K) fertilizers, including DAP and NPKS grades. The tentative budgetary requirement for Rabi 2025–26 is ₹37,952.29 crore, which is ₹736 crore higher than Kharif 2025.
Over ₹2.04 lakh crore has been allocated under NBS between 2022–23 and 2024–25 to ensure affordable fertilizer access to farmers. Domestic production of P&K fertilizers (DAP & NPKS) has risen from 112.19 LMT (2014) to 168.55 LMT (2025, upto 30 Dec) — reflecting over 50% growth.
Nutrient-Based Subsidy (NBS) Scheme
- Introduced on 1 April 2010, the NBS Scheme marked a policy shift in the fertilizer sector to:
- Provide fertilizers at subsidized and affordable prices
- Promote balanced and efficient nutrient use
- Encourage soil-specific nutrient application
- Subsidies are linked to the nutrient content of fertilizers — N, P, K, S (NPKS).
- Promotes:
- Balanced fertilization
- Improved soil health
- Reduction of nutrient imbalance
- Use of secondary and micronutrients
- Supports agricultural sustainability and crop productivity while keeping farmer input costs under control.
Outcomes & Policy Priorities of NBS Scheme
- Promotes balanced nutrient application and prevents over-dependence on any one fertilizer.
- Ensures timely availability of fertilizers at subsidized prices.
- Encourages competition, innovation, and quality improvement in the fertilizer industry.
- Supports introduction of advanced and micronutrient-enriched fertilizers.
- Aligns subsidy structure with global price trends for fertilizers and raw materials.
- Subsidy is provided to manufacturers/importers at notified rates to maintain stable MRPs for farmers.
- Applicable to 28 grades of P&K fertilizers, including DAP.
Major Provisions & Salient Features
- Government provides a fixed, annually/biannually revised subsidy linked to nutrient composition.
- Until Rabi 2023–24, NBS covered 25 grades; from Kharif 2024, three additional grades added:
- NPK (11:30:14) fortified with Mg, Zn, B, S
- Urea-SSP (5:15:0:10)
- SSP (0:16:0:11) fortified with Mg, Zn, B
- Now 28 P&K fertilizer grades are subsidized.
- P&K fertilizers operate in a decontrolled regime — companies set MRP with government oversight, and farmers receive subsidy benefit at purchase.
NBS Rates for Rabi 2025–26
- Applicable period: 01 Oct 2025 – 31 Mar 2026
- Subsidy provided at notified per-kg nutrient rates:
| Nutrient | NBS Subsidy (₹/kg) |
| Nitrogen (N) | 43.02 |
| Phosphate (P) | 47.96 |
| Potash (K) | 2.38 |
| Sulphur (S) | 2.87 |
- DAP subsidy increased to ₹29,805/MT (Rabi 2025–26) from ₹21,911/MT (Rabi 2024–25).
- Ammonium Sulphate (domestic & imported) included under NBS for Rabi 2025–26.
- Fortified/Coated fertilizers with Boron/Zinc will:
- Continue receiving subsidy
- Get additional per-MT subsidy to promote balanced nutrient use.
Operational Management & Compliance Monitoring
Cost, Pricing & Reporting
- Companies must submit audited cost data and justify MRPs.
- MRPs must align with notified subsidy structure and remain reasonable.
Regulation of Profit Margins
- Profit beyond notified limits treated as unreasonable and recoverable:
- Importers — up to 8%
- Manufacturers — up to 10%
- Integrated manufacturers — up to 12%
Mandatory MRP & Subsidy Display
- Every fertilizer bag must display:
- MRP
- Subsidy per bag and per kg
- Over-charging beyond MRP is punishable under the Essential Commodities Act, 1955.
Monitoring & Digital Tracking
- Movement, production, imports tracked through Integrated Fertilizer Monitoring System (iFMS).
- Fertilizers must be delivered up to retail point on F.O.R. basis.
- Weekly coordination with States via DoF & DA&FW.
- iFMS enables real-time supply chain visibility and DBT transparency.
Major Achievements & Impact
1. Domestic Production Growth
- P&K (DAP & NPKS) production increased:
- 112.19 LMT (2014) → 168.55 LMT (2025)
- Strengthens indigenous capacity & import substitution, aligned with Atmanirbharta.
2. Improved Soil Health & Productivity
- Balanced P&K use improved yields:
- Foodgrain yield increased from 1,930 kg/ha (2010–11) to 2,578 kg/ha (2024–25).
3. Strong Financial Support
- ₹2.04 lakh crore subsidy (2022–23 to 2024–25)
- Ensures affordability, availability, and balanced fertilizer usage.