Prime Minister Narendra Modi stated that farmers remain the government's top priority as the Union Cabinet cleared new subsidy rates.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Rabi 2026-27 season on Wednesday, according to reports by The Economic Times and India Today.
The government has estimated a budgetary requirement of approximately Rs 62,370.02 crore for the six-month period from October 1, 2026, to March 31, 2027. This amount is roughly Rs 24,417.73 crore higher than the requirement for the Rabi 2025-26 season.
The subsidy will be provided to fertiliser manufacturers and importers to help keep the retail costs of products like Di-Ammonium Phosphate (DAP) and various NPKS grades low for farmers. The move aims to protect agricultural producers from the impact of shifting global input costs and international market prices.
In a post on X, Prime Minister Modi said that the nation's farmers have always been the government's top priority. He added that the central government is working to improve their lives even during difficult global conditions.
The Prime Minister noted that the approval would ensure that international price changes do not affect farmers and that they can continue to access fertilisers at reasonable rates. The NBS scheme, which has been in place since April 1, 2010, uses nutrient-wise rates to determine the subsidies provided to companies.
