The Centre on Wednesday approved a ₹41,534 crore subsidy for phosphatic and potassic (P&K) fertilisers for the 2026 kharif season, marking a 12 per cent increase over the previous year to support farmers ahead of sowing.
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. The revised subsidy rates will be effective from April 1 to September 30, 2026.
The kharif cropping season begins with the onset of the southwest monsoon in June, making fertiliser availability and pricing a key concern for farmers.
Information and Broadcasting Minister Ashwini Vaishnaw said the subsidy outlay has been increased by ₹4,317 crore compared to the 2025 kharif season.
Under the revised rates, subsidy on nitrogen has been fixed at ₹47.32 per kg, phosphate at ₹52.76 per kg, potash at ₹2.38 per kg, and sulphur at ₹3.16 per kg.
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The government has increased subsidy rates for nitrogen, phosphate and sulphur, while keeping the potash subsidy unchanged from the 2025 rabi season levels.
For comparison, during the just-concluded rabi season, subsidy rates stood at ₹43.02 per kg for nitrogen, ₹47.96 per kg for phosphate, ₹2.38 per kg for potash and ₹2.87 per kg for sulphur.
The subsidy is provided under the Nutrient Based Subsidy scheme (NBS), which has been in place since April 2010 and covers 28 grades of P&K fertilisers.
While retail prices of non-urea fertilisers such as di-ammonium phosphate (DAP), muriate of potash (MoP) and NPK blends are decontrolled and determined by manufacturers, the Centre provides fixed subsidies to keep prices affordable for farmers.
The total budgetary allocation for fertiliser subsidies, including both NBS and urea, for FY 2026-27 is estimated at around ₹1.70 lakh crore, covering both the kharif 2026 and rabi 2026-27 seasons.
The move is aimed at ensuring timely availability of key nutrients and shielding farmers from volatility in global fertiliser prices.
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