Cabinet Approves the Nutrient Based Subsidy Rates for Rabi 2025-26 on Phosphatic and Potassic Fertilizers

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Nutrient Based Subsidy (NBS) rates for the Rabi Season 2025-26 on Phosphatic and Potassic fertilizers. This decision is pivotal for ensuring affordable fertilizer availability for farmers, aligning with global price trends. Last Updated: 2025-10-30

Key Facts About Nutrient Based Subsidy Rates for Rabi 2025-26

• Cabinet Approval: NBS rates for Rabi 2025-26 on P&K fertilizers approved.
• Objective: Ensure affordable fertilizer availability for farmers.
• Budget: Approx. Rs. 37,952.29 crore required for Rabi season.
• NBS Scheme: Launched on April 1, 2010, to provide affordable P&K fertilizers.
• Coverage: 28 grades of P&K fertilizers included.
• Subsidy Basis: Fixed amount per kg of nutrients like N, P, K, and S.
• Special Support: Additional subsidies during global price volatility.
• Decontrol: Companies can fix MRP, monitored by the government.

India's Agricultural Sustainability and Fertilizer Policy

The approval of the NBS rates for Rabi 2025-26 is significant for India's agricultural sustainability. It aligns with the country's strategic goal of ensuring food security while managing fiscal constraints. Fertilizer subsidies are the second-largest subsidy in India, highlighting the need for efficient allocation. The scheme also addresses the challenge of import vulnerability due to high dependence on global markets, thereby promoting domestic resilience.

Related Government Schemes/Policies

• Nutrient Based Subsidy (NBS) Scheme: Provides subsidies for P&K fertilizers to ensure affordability.
• Soil Health Card Scheme: Aims to promote balanced use of fertilizers based on soil health.
• Pradhan Mantri Krishi Sinchai Yojana: Enhances irrigation efficiency, indirectly affecting fertilizer use.

UPSC Relevance

• GS Paper 3: Economic Development - Subsidies, Agriculture, and Food Security.
• Prelims Angle: Questions on the NBS scheme, budget allocations, and fertilizer types.
• Mains Angle: Analytical themes on subsidy rationalization, sustainable agriculture, and fiscal policy.
• Essay Paper: Topics on agricultural sustainability and economic reforms.

FAQ Section

• What is the Nutrient Based Subsidy (NBS) Scheme? The NBS Scheme, launched on April 1, 2010, provides subsidies for Phosphatic and Potassic fertilizers to ensure they are affordable for farmers.
• Why is the NBS important? It ensures the availability of fertilizers at affordable rates, supports balanced nutrient use, and addresses global price volatility, with a budget of approximately Rs. 37,952.29 crore for Rabi 2025-26.
• What are the key features of the NBS Scheme? The scheme covers 28 grades of fertilizers, provides fixed subsidies per nutrient, and allows companies to set MRP while being monitored by the government.