Rabi 2026-27: Cabinet approves ₹62,370 crore NBS fertiliser subsidy

11 November 2026 · English Economy & Banking

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Current affairs of 11 November 2026 (Shanmugam IAS Academy) – explained for UPSC, TNPSC and other competitive exams

News

The Union Cabinet chaired by Prime Minister Narendra Modi on 11 November 2026 approved the Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Rabi 2026-27 season. The tentative budgetary requirement is ₹62,370.02 crore – about ₹24,417.73 crore (around 64%) more than the ₹37,952.29 crore for Rabi 2025-26. The rates apply from 1 October 2026 to 31 March 2027. Twenty-eight grades of P&K fertilisers, including di-ammonium phosphate (DAP) and various NPKS grades, are made available at subsidised prices under it. The government said the subsidy was rationalised in view of rising international prices of fertilisers and inputs such as urea, DAP, muriate of potash (MOP) and sulphur. Union Minister Ashwini Vaishnaw told the Cabinet briefing that farmers would face no extra burden and domestic manufacturing would rise.

Key facts for the exam

Background

• What NBS is: under this scheme, in force since 1 April 2010, a fixed per-kg subsidy is announced each season (Kharif and Rabi) for the nutrients nitrogen (N), phosphorus (P), potash (K) and sulphur (S). Retail prices of P&K fertilisers are set by the companies (they are decontrolled). Urea, however, is outside NBS; its maximum retail price (MRP) is fixed by the government.
• Science: DAP's nutrient grade is 18-46-0 (18% N, 46% P₂O₅). The potash fertiliser 'muriate of potash' (MOP) is chemically potassium chloride (KCl). The commonly recommended N:P:K ratio is 4:2:1; overuse of urea distorts this ratio and harms soil health. India meets almost all of its potash needs through imports.
• Economy and governance: fertiliser subsidy is one of the Centre's biggest subsidy bills (after food subsidy). The Department of Fertilizers works under the Ministry of Chemicals and Fertilizers. Companies are paid subsidy on the quantity actually sold to farmers through Point-of-Sale (PoS) machines (fertiliser DBT). The two seasons: Kharif (June–October, south-west monsoon) and Rabi (October–March, winter).

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Sources: ANI; Business Standard; The Tribune; DT Next; Department of Fertilizers; Madras Fertilizers Ltd. Compiled by Shanmugam IAS Academy.

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