New Delhi, April 8 The government on Wednesday approved a 12 per cent increase in subsidies for phosphate and potash (P&K) fertilizers for the Kharif 2026 season to ₹41,534 crore, in order to protect farmers from rising global prices amid the conflict in West Asia.
The subsidy for P&K fertilizers for the Kharif 2025 season was ₹37,216 crore.
The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, fixed subsidy rates effective from April 1 to September 30, 2026.
For Kharif 2026, the government has set the subsidy for nitrogen at ₹47.32 per kg (up from ₹43.02 per kg in the 2025-26 Rabi season), phosphate at ₹52.76 per kg against ₹47.96 per kg, and sulphur at ₹3.16 per kg against ₹2.87 per kg. The potash subsidy remains steady at ₹2.38 per kg.
Subsidies are extended across 28 grades of P&K fertilizers under the Nutrient Based Subsidy (NBS) scheme, which has been in force since April 2010.
"The subsidy has been increased by ₹4,317 crore over the Kharif 2025 season," Information and Broadcasting Minister Ashwini Vaishnaw told reporters.
Despite a sharp increase in the prices of Di-ammonium Phosphate (DAP) in international markets since the Covid years, the minister said that the retail price for farmers remains at ₹1,350 per 50-kg bag.
Whether it's the Covid years or the West Asia crisis, the Prime Minister has remained a safety shield for farmers, protecting them from global price volatility, he added.
The Cabinet also approved a set of additional measures: provisions to manage global price volatility, extension of similar safeguards to imported Triple Super Phosphate (TSP) to ensure supply stability, continuation of freight subsidy for Single Super Phosphate (SSP), and inclusion of both imported and domestically manufactured Ammonium Sulphate under the NBS scheme for Kharif 2026.
Kharif sowing typically begins with the onset of the southwest monsoon in June.
The total budgetary allocation for the NBS and urea subsidy scheme for FY 2026-27 — covering both Kharif 2026 and Rabi 2026-27 — stands at ₹1,70,799 crore.
Retail prices of non-urea fertilizers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and Nitrogen, Phosphate, Potash (NPK) are decontrolled and determined by manufacturers, while the Centre provides them with fixed subsidies each year.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.