Centre hikes non-urea fertiliser subsidy to ₹37,952 cr for rabi 2025

Hike to compensate for rising import price of sulphur, phosphorus and DAP

The Centre on Tuesday raised the subsidy on non-urea fertilisers- phosphorus (P) and sulphur (S)- for the ongoing 2025-26 rabi season to ₹37,952 crore to cover for the rising import costs for manufacturers and also provide relief to the farming community.

 

However, the subsidy rates for nitrogen (N) and potash (K) were kept unchanged. The rates will be effective from October 1, 2025 till March 31, 2026.

 

The Union Cabinet, headed by Prime Minister Narendra Modi, increased the subsidy under the Nutrient Based Subsidy (NBS) scheme. The subsidy for phosphorus was hiked to ₹47.96 per kg for the ongoing rabi season from ₹43.60 per kg in the FY26 kharif season, an increase of 10 per cent.  From the previous rabi season, the hike has been around 56 per cent.

   

Similarly, the subsidy for sulphur was raised to ₹2.87 per kg in FY26 rabi season from ₹2.61 per kg for FY26 kharif, a rise of around 10 per cent. From the previous (FY25) rabi season, the increase was much steeper by around 63 per cent.

 

The subsidy rates for nitrogen and potash were unchanged at ₹43.02 per kg and ₹2.38 per kg, respectively.

 

The increase in subsidy for phosphorus and sulphur is mainly due to increase in landed price of phosphoric acid, sulphur, and also finished Di-ammonia phosphate (DAP).

 

Data shows that the landed price of phosphoric acid has risen from around $1,055 per tonne in June to $1,258 per tonne in September (CFR or cost and freight inclusive), while that of sulphur has risen from $150 per tonne to $288 per tonne from October 2024 till now. The landed price of finished DAP has moved from around $680 per tonne in April 2025 to around $790 per tonne in August, an increase of around 16.17 per cent.

 

"The subsidy approved is higher by about ₹14,000 crore from the previous rabi season. During the last rabi season, the subsidy was about ₹24,000 crore," Information and Broadcasting Minister Ashwini Vaishnaw told reporters.

 

The subsidy rate has been fixed, considering the import price and other factors like nutrient requirement, subsidy burden and maximum retail price (MRP), he said.

 

The government has provided a special package to ensure availability of DAP and triple super phosphate (TSP) to farmers without any increased MRP.

 

The NBS scheme is a central government initiative that provides subsidies for non-urea fertilisers based on their nutrient content — specifically nitrogen, phosphate, potash, and sulphur.

 

The subsidy is determined per kilogram for each nutrient contained in P&K fertilisers, with rates announced annually or bi-annually based on global and domestic prices, inventory, and currency exchange rates.

 

Only phosphatic and potassic fertilisers (28-plus grades including DAP, MOP, SSP, NPK, and complexes), except urea, are covered under NBS.

 

The NBS scheme has been in effect since April 2010 and subsidies are paid directly to fertiliser companies, enabling them to sell fertilisers to farmers at affordable prices.

 

The government also provides freight subsidies for transport and distribution of these fertilisers.