Will the Centre Invest ₹37,952 Crore in Fertiliser Subsidies for Farmers This Rabi Season?
Synopsis
Key Takeaways
- The government plans to allocate ₹37,952 crore for Rabi 2025–26 fertiliser subsidies.
- This amount is ₹736 crore more than the Kharif 2025 budget.
- The NBS scheme has led to a 50% growth in domestic fertiliser production.
- Over ₹2.04 lakh crore has been allocated for NBS subsidies from 2022–23 to 2024–25.
- The scheme promotes soil health and sustainable agriculture.
New Delhi, Jan 5 (NationPress) The government's provisional budget to cover the subsidy expenses for the current Rabi 2025–26 season stands at an estimated ₹37,952 crore, which is around ₹736 crore more than what was allocated for the Kharif 2025 season, as stated in an official announcement made on Monday.
The government has sanctioned the nutrient-based subsidy (NBS) rates for Rabi 2025–26, effective from October 1, 2025, to March 31, 2026, which includes Phosphatic and Potassic (P&K) fertilisers such as DAP and NPKS grades.
Thanks to the Centre’s NBS initiative, there has been a remarkable growth of 50 percent in domestic fertiliser production, increasing from 112.19 lakh metric tonnes (LMT) in 2014 to 168.55 LMT in 2025.
Over ₹2.04 lakh crore has been allocated for NBS subsidies from 2022–23 to 2024–25, ensuring that farmers have affordable access to fertilisers.
The NBS program has become a fundamental element of India’s fertiliser policy, fostering balanced fertilization, enhancing soil health, and promoting sustainable agricultural practices. The introduction of the Integrated Fertilizer Management System (iFMS) for monitoring and regular collaboration with states has improved transparency, accountability, and timely distribution across regions, as per the statement.
Furthermore, the NBS scheme has not only bolstered domestic fertiliser production but has also led to increased food grain yields, improved soil nutrient equilibrium, and enhanced self-sufficiency in the fertiliser industry, the statement added.
Initially launched on April 1, 2010, the NBS scheme marked a pivotal shift in the fertiliser sector, making fertilisers accessible to farmers at subsidized, reasonable prices while promoting their balanced and effective use.
Under the NBS framework, subsidies are calculated based on the nutrient composition of fertilisers, primarily NPKS: Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S). This strategy not only encourages balanced nutrient application but also enables farmers to make informed decisions that cater to the specific needs of their soils and crops.
By advocating the use of secondary and micronutrients, the scheme also tackles soil degradation and nutrient imbalances resulting from previous years of uneven fertiliser application.