Agri sector waits to see if new NBS will absorb special incentive on DAP

The special incentive as well as the increase in NBS rates has also meant that DAP is now the second fertiliser, the other being urea, fpr which the Centre is keeping its prices artificially low

Sometime in the next few weeks, the government is likely to announce the nutrient-based subsidy (NBS) rates for FY-26 fiscal that mostly impact the non-urea fertilisers. 

What is being closely watched is the whether the special incentive of Rs 3,500 per tonne on Di-Ammonia Phosphate (DAP) that the government extended indefinitely on January 1, 2025, gets subsumed into the main NBS rates or continues to remain separate. 

The special incentive has ensured that companies continue to retail a 50 kg bag of DAP at the ongoing price of Rs 1,350, considerably lower than the actual production cost of both domestically-produced