Govt raises P&K fertiliser subsidy by 12% to Rs 41,534 cr for Kharif 2026

New Delhi: The Union Cabinet on Wednesday approved a 12 per cent increase in subsidy for phosphatic and potassic fertilisers for the Kharif 2026 season, raising the allocation to Rs 41,534 crore from Rs 37,216 crore in the previous Kharif cycle. The move is aimed at shielding farmers from rising global prices linked to the ongoing West Asia conflict. The decision was taken at a meeting chaired by Prime Minister Narendra Modi, with revised subsidy rates set to be effective from April 1 to September 30, 2026. Under the updated rates, subsidy for nitrogen has been fixed at Rs 47.32 per kg, up from Rs 43.02 per kg in the previous season. Phosphate subsidy has been increased to Rs 52.76 per kg from Rs 47.96 per kg, while sulphur will receive Rs 3.16 per kg compared to Rs 2.87 per kg earlier. The subsidy for potash remains unchanged at Rs 2.38 per kg.

Information and Broadcasting Minister Ashwini Vaishnaw said the increase amounts to an additional Rs 4,317 crore over the Kharif 2025 season. He noted that despite a surge in global prices of Di-ammonium Phosphate since the Covid period, the retail price has been maintained at Rs 1,350 per 50 kg bag for farmers.

The subsidy applies to 28 grades of fertilisers under the Nutrient Based Subsidy scheme, which has been in place since April 2010. Additional measures approved by the Cabinet include steps to manage global price volatility, extending safeguards to imported Triple Super Phosphate, continuing freight subsidy for Single Super Phosphate, and including both imported and domestically produced Ammonium Sulphate under the scheme.

Kharif sowing typically begins with the onset of the southwest monsoon in June. For the financial year 2026-27, the total allocation for NBS and urea subsidies has been set at Rs 1,70,799 crore. Retail prices of non-urea fertilisers remain decontrolled, with manufacturers determining rates while receiving fixed subsidies from the government.