The government has earmarked around Rs 37,952 crore to cover subsidy costs for the ongoing Rabi 2025-26 season, which is approximately Rs 736 crore more than the budget for the Kharif 2025 season. Nutrient-based subsidy rates for Rabi 2025-26 have been approved, effective from October 1, 2025, until March 31, 2026, encompassing Phosphatic and Potassic (P&K) fertilisers like DAP and NPKS grades.
The nutrient-based subsidy scheme by the Centre has led to a significant 50% surge in domestic fertiliser production, increasing from 112.19 lakh metric tonnes (LMT) in 2014 to 168.55 LMT in 2025. An allocation exceeding Rs 2.04 lakh crore between 2022-23 and 2024-25 for NBS subsidies has ensured affordable fertiliser access for farmers.
The NBS scheme has become a pivotal aspect of India’s fertiliser policy, promoting balanced fertilization, soil health, and sustainable agriculture. Through digital monitoring via the Integrated Fertilizer Management System (iFMS) and consistent state coordination, transparency, accountability, and timely supply have been enhanced across regions as per the official statement.
The NBS scheme not only spurred growth in domestic fertiliser production but also boosted foodgrain productivity, improved soil nutrient balance, and reinforced self-sufficiency in the fertiliser domain. Introduced by the Government of India on April 1, 2010, the NBS scheme marked a significant policy transition in the fertiliser sector, aiming to provide fertilisers to farmers at subsidized rates while encouraging their balanced and efficient use.
Under the NBS framework, subsidies are calculated based on the nutrient content of fertilisers, primarily NPKS: Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S). This strategy not only advocates for balanced nutrient application but also empowers farmers to make informed decisions aligning with their soil and crop requirements. By promoting secondary and micronutrient usage, the scheme addresses soil degradation and nutrient imbalance issues arising from imbalanced fertiliser application.
