The Union Cabinet on Wednesday approved a ₹ 62,370 crore subsidy budget for phosphatic and potassic (P&K) fertilisers for the 2026-27 Rabi season, an increase of 64.3% over the ₹ 37,952 crore earmarked for the previous season, citing trends in the international prices of fertilisers and inputs.
India is particularly exposed to the disruptions. The country sourced almost two-thirds of its nitrogenous fertiliser imports from the Gulf region, based on 2024 trade data, according to the World Trade Organization (WTO). International urea prices rose from around $400 per tonne before the conflict to more than $850 per tonne in April. Di-ammonium phosphate (DAP) prices increased from approximately $580 to $770 per tonne, according to the WTO. Urea prices subsequently eased to around $453 per tonne in June.
The pressure on phosphate fertilisers has persisted. Nitrogen markets were moving closer to pre-war levels. The subsidy is linked to the nutrient content of each fertiliser grade and is revised periodically in response to international and domestic market conditions.
The government provides subsidies on 28 grades of P&K fertilisers under the Nutrient Based Subsidy (NBS) scheme, which has been in operation since April 2010. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the NBS rates for P&K fertilisers, including DAP and NPKS grades from October 1 to March 31, 2027. For the previous Rabi season, the government fixed the per kg nutrient subsidy at ₹ 43.02 for nitrogen, ₹ 47.96 for phosphate, ₹ 2.38 for potash, and ₹ 2.87 for sulphur. Earlier reporting noted: Cabinet approves ₹62,370 cr. subsidy for P&K fertilisers in rabi season The government on Wednesday (November 11, 2026) approved a ₹62,370 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season 2026-27. Earlier reporting noted: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Department of Fertilisers’ proposal to fix the Nutrient Based Subsidy (NBS) rates for the Rabi season 2026-27 (from October 2026 to March 31, 2027) on Phosphatic and Potassic (P&K) fertilisers. Earlier reporting noted: The Cabinet has approved ₹62,370 crore as subsidy for P&K fertilisers, Union Information and Broadcasting Minister Ashwini Vaishnaw told reporters after the Cabinet meeting.
An assessment by the International Food Policy Research Institute in September said phosphate supplies remained tight and expensive, with sulphur shortages continuing to constrain production and trade.
