Nutrient Based Subsidy Scheme for Rabi 2026-27 Approved

#GS-3 #Economy #Agriculture #Food Security #Nutrient Based Subsidy #P&K Fertilizers #Government Schemes

Key takeaways

The Union Cabinet approved Rs 62,370.02 crore for Nutrient Based Subsidy rates for the Rabi 2026-27 season.
This new allocation represents an increase of Rs 24,417.73 crore over the previous Rabi season budget.
The scheme launched on April 1, 2010, covers 28 grades of P&K fertilizers containing Nitrogen, Phosphorus, Potash, and Sulphur.
Urea remains excluded from the Nutrient Based Subsidy framework and continues under statutory price controls.

The Union Cabinet approved the Nutrient Based Subsidy rates for P&K fertilizers for the Rabi 2026-27 season.
The government allocated Rs 62,370.02 crore for this subsidy budget.
This allocation shows an increase of Rs 24,417.73 crore compared to the previous Rabi season.

The Department of Fertilizers under the Ministry of Chemicals and Fertilizers runs this central sector scheme.
The government provides a fixed subsidy amount on each grade of subsidized Phosphatic and Potassic fertilizers based on their nutrient content.
Authorities decide these subsidy rates on an annual or biannual basis.

The scheme came into effect on April 1, 2010, replacing the old Concession Scheme for decontrolled P&K fertilizers.
Farmers previously overused heavily subsidized urea compared to phosphatic and potassic fertilizers.
This imbalance damaged soil health across the country, prompting the government to launch the new regime.

The main objective is to promote balanced fertilizer use across farms in India.
It aims to improve soil health and boost overall crop productivity.
The scheme also encourages innovation in fertilizers and ensures efficient government spending.

The scheme covers four main nutrients: Nitrogen, Phosphorus, Potash, and Sulphur.
It provides extra per-tonne subsidies for fertilizers enriched with micronutrients like Boron and Zinc.
Urea remains outside this scheme because the government controls its prices under a separate law.

The government sets a fixed per-kilogram subsidy rate for each nutrient element.
Official calculations determine the total subsidy on a fertilizer bag based on its exact chemical percentage.
The scheme currently covers 28 grades of P&K fertilizers, including DAP, MOP, SSP, and complex NPKS blends.
Manufacturers set retail prices at reasonable levels while receiving fixed subsidies directly after verified sales.
Companies receive subsidy payments only after point-of-sale devices verify physical sales to farmers through Aadhaar.
The government offers financial incentives for micronutrient fortification to meet specific regional soil needs.

The policy protects farmers from global price surges and import supply disruptions.
Encouraging balanced nutrient use reduces urea overuse and stops long-term soil degradation.