CM Bhajan Lal Backs Cabinet's ₹62,370 Cr Rabi Fertiliser Subsidy
Synopsis
Key Takeaways
A central cabinet decision that directly determines what every wheat and mustard farmer pays for fertiliser this winter just received a sharp endorsement from Rajasthan Chief Minister Bhajan Lal Sharma. On Wednesday, 11 November 2026, the CM welcomed the Union Cabinet's approval of Nutrient Based Subsidy (NBS) rates on phosphatic and potassic fertilisers for the Rabi season 2026-27, calling it a commendable and farmer-friendly move backed by a budgetary provision of approximately ₹62,370.02 crore.
What the cabinet cleared — and why Rabi season timing matters
The Nutrient Based Subsidy (NBS) scheme, introduced in April 2010, replaced an older cost-plus model by pegging fertiliser subsidies to the actual nutrient content — nitrogen, phosphorus, potassium and sulphur — rather than the brand or the manufacturer. Every season, the Union Cabinet revises these per-nutrient subsidy rates to absorb swings in global commodity prices, keeping farmgate prices for DAP (Di-Ammonium Phosphate) and NPKS (Nitrogen-Phosphorus-Potassium-Sulphur) fertilisers within reach of smallholders.
Rabi sowing — the winter crop cycle that produces the bulk of India's wheat, mustard and pulses — typically kicks off across northern and western India between October and December. Approving NBS rates before or at the start of this window is not ceremonial; it is the signal that determines whether supply chains move fertiliser stocks to mandis and cooperative stores in time.
Sharma's welcome and what it means for Rajasthan's farmers
CM Sharma said the decision would ensure DAP and NPKS fertilisers are available to farmers 'in adequate quantities at affordable rates' — directly addressing two persistent complaints: shortage at the point of sale and price volatility. He framed the allocation as a step toward reducing cultivation costs, boosting agricultural output and strengthening the financial position of the farming community.
Rajasthan is one of India's largest Rabi crop producers, with wheat and mustard dominating the winter acreage. Access to phosphatic fertilisers at subsidised rates is especially critical in the state's semi-arid districts, where soil nutrient deficiencies make purchased inputs a non-negotiable part of the season's economics. The CM's response signals that state machinery will be aligned to ensure the central subsidy actually reaches farmers on the ground.
The ₹62,370 crore figure in context
The budgetary provision cited — roughly ₹62,370 crore — reflects the scale of India's annual fertiliser subsidy commitment under the NBS framework. Successive union budgets have treated this line item as a core pillar of farmer-welfare spending, particularly as global phosphate and potash prices have remained volatile since the supply disruptions of 2021-22. Without the subsidy buffer, retail DAP prices could spike sharply, compressing margins for farmers who cannot reduce their input use without hitting yields.
Sharma concluded his post by conveying gratitude to Prime Minister Narendra Modi and the Union Cabinet for 'keeping farmers' interests paramount' — a formulation that doubles as a political alignment signal ahead of continued agricultural-policy rollout.
The next indicator to watch: whether fertiliser stocks reach Rajasthan's district-level distribution points before peak sowing demand — and whether this season's NBS allocation proves sufficient without a supplementary outlay mid-year.