Key Points:

• Implementation Period: 1 October 2025 to 31 March 2026
• Total Budgetary Requirement: Approximately ₹37,952.29 crore
• Comparison with Previous Kharif Season (2025): About ₹736 crore higher than the budgeted requirement for Kharif 2025.
• Comparison with Previous Rabi Season (2024-25): Around ₹14,000 crore higher than the previous Rabi season subsidy (₹24,000 crore), marking a significant increase in allocation.
• Total Fertilizer Subsidy (FY 2025-26): With this rise, the total fertilizer subsidy (including Urea and NBS) may exceed ₹1.95 lakh crore.
• Coverage: Includes all 28 grades of fertilizers such as DAP, MOP, SSP (Single Super Phosphate), and NPK complexes.
• Objective: To ensure the availability of fertilizers to farmers at affordable prices.

Approved Nutrient-Based Subsidy Rates:

Nutrient Based Subsidy (NBS) Scheme

• The NBS Scheme was launched in 2010 by the Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India.

Objective:

• Promote Balanced Fertilization: Encourage farmers to use fertilizers containing multiple nutrients like Phosphorus (P), Potassium (K), and Sulphur (S), instead of relying solely on nitrogen-based Urea.
• Enhance Fertilizer Efficiency: Ensure timely availability of fertilizers while reducing the overall subsidy burden on the government.

Key Features:

• Subsidy Based on Nutrients: Instead of controlling the final retail price, the government provides a fixed subsidy per kg of nutrients (N, P, K, S) contained in the fertilizers.
• Beneficiaries: The subsidy is provided directly to fertilizer companies, enabling them to sell fertilizers to farmers at reduced prices.
• Applicable Fertilizers: Covers Phosphatic and Potassic (P&K) fertilizers, mainly DAP (Di-Ammonium Phosphate), MOP (Muriate of Potash), and NPK Complex fertilizers.
• Exclusion of Urea: Urea, the main nitrogen fertilizer, is not covered under the NBS scheme. It remains under price control (MRP) and receives a traditional subsidy, which leads to its higher usage in India.
• Benefits: The scheme encourages farmers to choose fertilizers based on soil fertility and crop requirements, improving agricultural productivity and soil health.

Subsidy Calculation:

• The government announces the subsidy rates annually (or semi-annually) based on the per kilogram content of each nutrient (N, P, K, S) in the fertilizer.