Rabi fertiliser subsidy 2026-27: NBS rates per kg, outlay up 64%

The Union Cabinet on Wednesday, 11 November 2026, approved a tentative budget of Rs 62,370.02 crore for the nutrient-based subsidy on phosphatic and potassic (P&K) fertilisers for the Rabi 2026-27 season, which runs from 1 October 2026 to 31 March 2027. The amount is about Rs 24,418 crore, or 64%, more than the Rs 37,952.29 crore set for Rabi 2025-26. The per-kilogram subsidy on nitrogen roughly doubles and the rate on sulphur more than triples, while the rate on potash is unchanged, according to the approved rates.

Under the nutrient-based subsidy (NBS) system, the government does not fix the retail price of fertilisers like DAP or complex NPK mixes. Instead, it pays companies a fixed subsidy for every kilogram of each nutrient, nitrogen (N), phosphorus (P), potash (K) and sulphur (S), contained in the fertiliser they sell. The higher the rate per kilogram, the more of the cost the government absorbs, and the less the farmer has to pay at the shop.

The Rabi season is when farmers sow wheat, mustard, gram and other winter crops, and DAP is applied at sowing. When world prices of fertilisers and their raw materials rise, companies either raise retail prices or the government raises the subsidy. A 64% bigger outlay shows the government choosing the second path for this season, to keep prices for farmers steady while sowing is under way.

The cost falls on the public purse. Reports of the decision noted that the higher outlay could strain the Centre's fertiliser budget for 2026-27 and may require additional allocations later in the year. For fertiliser companies, the higher per-kg rates help them sell at existing prices without losses on imported raw materials. Reports said the package also includes a support mechanism for domestic makers of sulphur-based fertilisers.

Peepals calculation: The extra Rs 24,417.73 crore is a 64% rise (24,417.73 ÷ 37,952.29 ≈ 0.643). The sulphur rate rises about 3.6 times (10.42 ÷ 2.87 ≈ 3.63), an increase of about 263%. Spread over the 182 days from 1 October 2026 to 31 March 2027, the outlay comes to about Rs 343 crore of subsidy a day (62,370 ÷ 182 ≈ 342.7). Our calculation from the reported figures.

Short-term: Farmers buying DAP and complex fertilisers for Rabi sowing should see the higher subsidy absorb most of the rise in global costs, rather than a jump in retail prices, for the season from October 2026 to March 2027.

Long-term: A subsidy bill that rises with every spike in world prices leaves the budget exposed to events outside India's control. It also strengthens the case for more domestic production of phosphatic and potassic raw materials, and for balanced use of nutrients, including sulphur, in Indian soils.

Who is affected: Farmers sowing wheat, mustard, gram and other Rabi crops; fertiliser manufacturers and importers; cooperative and private fertiliser retailers; and the Finance Ministry, which must fund the higher subsidy.

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