NEW DELHI: Prime Minister Narendra Modi announced Wednesday that the Union Cabinet approved a nutrient-based fertiliser subsidy for the 2026-27 rabi season.
Modi, who chaired the Cabinet meeting, said in a post on X that the subsidy would protect farmers from swings in international prices and keep fertilisers affordable.
“Farmers across the country have always been our top priority,” Modi wrote, according to X’s translation of his Hindi post. “Even amid difficult conditions around the world, we are leaving no stone unturned to make their lives easier.”
He said the subsidy “will shield our farmers from fluctuations in international prices” while they continue to buy fertilisers at reasonable prices.
Budget rises sharply
The government estimates the subsidy will cost about Rs 62,370.02 crore, according to a press release. That is Rs 24,417.73 crore more than the Rs 37,952.29 crore budgeted for the 2025-26 rabi season, an increase of about 64%.
What the subsidy covers
The approved rates apply to phosphatic and potassic (P&K) fertilisers, including DAP and NPKS grades. They run from Oct. 1, 2026, to March 31, 2027.
The government makes 28 grades of P&K fertilisers available to farmers at subsidised prices through manufacturers and importers, the release said. The subsidy is paid to the companies at approved, notified rates. Farmers do not receive it directly.
Why the rates changed
The Cabinet cited recent trends in international prices of fertilisers and inputs such as urea, DAP, MOP and sulphur. The release said the subsidy on P&K fertilisers was also rationalised in view of those trends.
The release listed the benefits as keeping fertilisers available to farmers at subsidised, affordable and reasonable prices.
The scheme
The nutrient-based subsidy scheme has governed subsidies on P&K fertilisers since April 1, 2010. Under it, the government fixes a per-kilogram subsidy for each nutrient and revises the rates each season.
The government said the decision reflects its “farmer-friendly approach” and its commitment to ensuring that P&K fertilisers reach farmers at affordable prices.
