The Union Cabinet on Wednesday approved the Nutrient-Based Subsidy (NBS) rates for kharif 2026 by allocating ₹41,533.81 crore, which is ₹4,317 crore higher than the expenditure of ₹37,216.15 crore in the previous kharif season. While the potash (K) subsidy has been maintained at same level, the hike in nitrogen (N) is 10 per cent and it is 21 per cent, each in phosphorous (P) and sulphur (S).
As per the revised rates, fertilizer companies will be paid subsidy at ₹47.32/kg for N, Rs 52.76/kg for P, Rs 2.38/kg for K and Rs 3.16/kg for sulphur during Kharif 2026 (from April 1 to September 30, 2026), Information and Broadcasting Minister Ashwini Vaishnaw announced at a media briefing after the Cabinet meeting.
But, industry experts said that if the current rates are compared with the last revision made in NBS rates before the rabi season of 2025-26, the hike in phosphorous and sulphur is also 10 per cent, each as in urea. They also point out that the government has not changed the subsidy on K for the sixth season in a row after reducing it to ₹2.38/kg (rabi 2023) from ₹15.91/kg (in kharif 2023) despite fluctuation in global prices.
Subsidy policy
“Availability of fertilizers to farmers at subsidised, affordable and reasonable prices will be ensured,” the government said in a statement. The revision in rates warranted in view of recent trends in the international prices of fertilizers and inputs, it said.
According to the subsidy policy, while the entire burden on urea is met by the government, the NBS rates are supposed to be fixed for one season, allowing companies freedom to fix selling prices of Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and Complex (combination of N, P, K, S nutrients). But the government has instructed companies not to hike DAP rate beyond ₹1,350/bag (of 50 kg), assuring them to increase subsidy when required, so that there is no disruption in import of either the finished product or the raw materials.
Despite a sharp increase in DAP prices in international markets since the Covid years, the retail price for farmers has been held at ₹1,350 per bag, the minister said.
Imported Triple Super Phosphate (TSP), freight subsidy for Single Super Phosphate (SSP), and both imported and domestically manufactured Ammonium Sulphate will continue to be covered under the NBS scheme for kharif 2026 as well.
10% urea price hike
Official sources said that while the average imported urea price (f.o.b) in March 2025 was $425/tonne in April 2025, the government fixed the subsidy at ₹43.02/kg whereas the current urea rate is over $700/tonne, and there is only 10 per cent increase for kharif 2026. Similarly, imported DAP rate (CFR) in March 2025 was $640/tonne and now it is also around $800/tonne, but there is 21 per cent hike in subsidy rate.
Even as the government has been maintaining that it would be able to meet the domestic demand of fertilisers in the ensuing kharif season, the subsidy rates will be critical for the private sector to import DAP and complex fertilisers, sources said. According to the fertiliser ministry data, the demand for urea has been pegged at 194.01 lt, DAP at 59.17 lt, MOP at 17.57 lt, Complex at 84.99 lt and SSP at 34.81 lt for this kharif.
Published on April 8, 2026