The Union Cabinet, chaired by PM Modi, has approved subsidies on phosphorus and potash fertilisers for Rabi 2025-26, ensuring affordable prices, increased farmer income, and strengthened agricultural productivity across India through enhanced Nutrient-Based Subsidy (NBS) rates.
In a major pro-farmer move, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved subsidies on phosphatic and potassic (P&K) fertilisers for the upcoming Rabi season 2025-26. The decision, announced on Tuesday, aims to ensure the continued availability of essential fertilisers like phosphorus and potash at affordable rates to India’s farmers—popularly referred to as annadatas—while simultaneously enhancing their income.
The Cabinet approval pertains to the Nutrient-Based Subsidy (NBS) rates for the Rabi season, which extends from October 1, 2025, to March 31, 2026. The Department of Fertilisers had proposed the revised rates, which will apply to critical fertiliser varieties such as Di-Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades.
According to the government, the tentative budgetary requirement for Rabi 2025-26 is approximately ₹37,952.29 crore, marking an increase of ₹736 crore compared to the allocation for the Kharif season of 2025. This additional budget highlights the Centre’s commitment to maintaining the affordability of fertilisers despite global price fluctuations and rising input costs.
PM Modi Emphasises Commitment to Farmers’ Welfare
Prime Minister Narendra Modi reaffirmed the government’s dedication to strengthening the agricultural sector through policy and financial support. In a post on X (formerly Twitter), PM Modi wrote, “We are committed to the welfare of our farmer brothers and sisters across the country. In this direction, our government has taken a significant step by approving subsidies on phosphorus and potash fertilisers for the Rabi season of 2025-26.”
He further added that this initiative would make fertilisers available at affordable rates and boost farmers’ earnings, ensuring that agricultural production remains cost-effective and sustainable.
Ensuring Smooth Fertiliser Availability
The Nutrient-Based Subsidy (NBS) scheme plays a crucial role in India’s agricultural ecosystem by providing financial assistance to fertiliser manufacturers based on nutrient content, thereby enabling them to sell products at controlled prices. The continuation and enhancement of NBS rates for Rabi 2025-26 will ensure smooth and uninterrupted availability of phosphorus and potash fertilisers across states.
Officials from the Ministry of Chemicals and Fertilisers stated that the scheme is designed to protect farmers from volatile international fertiliser markets. Given that India imports a large portion of its phosphorus and potash requirements, global price shifts directly impact domestic fertiliser costs. Subsidies, therefore, act as a stabilising mechanism, shielding farmers from these fluctuations.
The approval also aligns with the government’s long-term strategy to achieve self-reliance in fertiliser production and reduce dependence on imports through new domestic plants and joint ventures abroad.
Economic and Agricultural Impact
Experts believe that the Cabinet’s decision will have multiple benefits for the agricultural economy. By keeping fertiliser prices stable, the government helps maintain lower input costs, ensuring better margins for farmers during the Rabi season—a period critical for crops such as wheat, barley, mustard, and gram.
Agricultural economists also note that consistent support through subsidies encourages farmers to maintain balanced nutrient application, improving soil health and crop productivity. The move is expected to particularly benefit small and marginal farmers, who form the backbone of India’s rural economy.
Additionally, the increased subsidy allocation demonstrates the Centre’s resolve to strengthen food security, maintain agricultural growth momentum, and empower rural livelihoods.
Government’s Broader Agricultural Reforms
The fertiliser subsidy announcement comes at a time when the Modi government is implementing several initiatives to modernise agriculture. These include promoting natural farming, encouraging the use of nano-fertilisers, digitising land and crop data through the AgriStack initiative, and expanding the PM-KISAN scheme.
The continued financial support through NBS reaffirms the government’s twofold approach—making agriculture profitable and sustainable. By supporting affordable inputs, the government ensures that farmers can focus on productivity rather than rising operational costs.
With the upcoming Rabi season approaching, the decision offers timely relief to millions of farmers preparing to sow their fields. It is also a signal of continuity in policy, ensuring predictability and stability in agricultural planning across the country.
| Also Read: Montha Cyclone makes Landfall in Kakinada, Red Alert Issued |
The approval of subsidies on phosphorus and potash for Rabi 2025-26 underlines the Modi government’s ongoing focus on rural empowerment and economic resilience. As fertiliser prices continue to be influenced by global supply chains, the Cabinet’s proactive stance ensures that Indian farmers remain protected from cost shocks while being equipped to sustain high productivity levels.
Ultimately, the decision reinforces the government’s promise to put farmers’ welfare at the centre of India’s development journey—ensuring that the country’s annadatas continue to prosper and contribute to national food security.
