{"id":88552,"date":"2026-11-12T18:18:16","date_gmt":"2026-11-12T12:48:16","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=88552"},"modified":"2026-11-12T18:19:05","modified_gmt":"2026-11-12T12:49:05","slug":"fertiliser-subsidy-rabi-season-2026-27","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/12-11-2026\/fertiliser-subsidy-rabi-season-2026-27","title":{"rendered":"Government Approves \u20b962,370 Crore Fertiliser Subsidy for Rabi Season"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Agriculture<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet has approved a subsidy of \u20b962,370.02 crore for fertilisers for the Rabi 2026\u201327 season, 64% higher than the previous year\u2019s allocation of Rs 37,952 crore.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Coverage:<\/strong> The subsidy applies to Phosphatic and Potassic (P&amp;K) fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades.<\/li>\n\n\n\n<li><strong>Beneficiaries: <\/strong>Fertiliser manufacturers and importers receive the subsidy so that fertilisers remain available to farmers at affordable prices.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are Fertilizers?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fertilizers are <strong>concentrated plant nutrients<\/strong> made from <strong>inorganic chemicals.\u00a0<\/strong><\/li>\n\n\n\n<li>Unlike organic manure, fertilizers contain nutrients in higher amounts and are <strong>applied in smaller quantities.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"e4e6e9\" data-has-transparency=\"false\" style=\"--dominant-color: #e4e6e9;\" loading=\"lazy\" decoding=\"async\" width=\"606\" height=\"372\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/11\/image-55.png\" alt=\"fertilizers\" class=\"not-transparent wp-image-88553\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/11\/image-55.png 606w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/11\/image-55-300x184.png 300w\" sizes=\"auto, (max-width: 606px) 100vw, 606px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Mechanism of Subsidy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Subsidy on Sale Price:<\/strong> The government provides financial support to fertilizer manufacturers or importers, lowering the price of fertilizers sold to farmers.<\/li>\n\n\n\n<li><strong>Direct Benefit Transfer (DBT):<\/strong> In some cases, the subsidy is transferred directly to farmers through their bank accounts to cut out the middlemen and ensure transparency.<\/li>\n\n\n\n<li><strong>Fixed Subsidy Rates: <\/strong>For urea, the subsidy is fixed per kilogram of the product, and for others like DAP, it is adjusted periodically based on market prices.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Nutrient-Based Subsidy (NBS) Scheme<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It was launched in <strong>2010<\/strong> by the<strong> Department of Fertilisers, Ministry of Chemicals and Fertilisers.<\/strong><\/li>\n\n\n\n<li><strong>Objective:<\/strong> To ensure the availability of <strong>P&amp;K fertilisers<\/strong> to farmers at subsidised and affordable prices while promoting balanced nutrient application.<\/li>\n\n\n\n<li><strong>Mechanism:<\/strong> The government provides a fixed subsidy per kilogram of nutrient (N, P, K and S) contained in notified fertilisers.\n<ul class=\"wp-block-list\">\n<li><strong>Subsidy rates are revised periodically<\/strong>, generally twice a year, based on international prices and input costs.<\/li>\n\n\n\n<li>Fertiliser companies are free to determine the retail prices of P&amp;K fertilisers, subject to government monitoring.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Coverage: <\/strong>The scheme covers 28 grades of P&amp;K fertilisers, including DAP, NPK and NPKS fertilisers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons for the Increase in Fertiliser Subsidy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rise in global fertiliser prices:<\/strong> International prices of DAP, urea, muriate of potash (MOP) and sulphur have increased, raising India&#8217;s fertiliser import costs.<\/li>\n\n\n\n<li><strong>Geopolitical disruptions: <\/strong>The Russia\u2013Ukraine conflict and the West Asia crisis have disrupted global fertiliser supply chains and increased input costs.<\/li>\n\n\n\n<li><strong>Higher energy costs: <\/strong>Natural gas (including LNG) is a key feedstock for urea production. Rising gas prices increase domestic fertiliser manufacturing costs.<\/li>\n\n\n\n<li><strong>Import dependence: <\/strong>India depends on imports for key fertilisers and raw materials such as phosphatic and potassic fertilisers, potash and sulphur, making domestic agriculture vulnerable to international price fluctuations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges Associated with Fertiliser Subsidies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Soil degradation:<\/strong> Excessive fertiliser use reduces soil health along with affecting soil microorganisms and lower long-term agricultural productivity.<\/li>\n\n\n\n<li><strong>Fiscal sustainability:<\/strong> International pricing raises the load on government subsidy and causes unpredictability in budgetary planning.<\/li>\n\n\n\n<li><strong>Leakages and diversion:<\/strong> Fertilisers used for agriculture may be diverted for non-agricultural purposes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government\u2019s Initiatives in the Fertilizer Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The One Nation One Fertilizer scheme<\/strong> was introduced to bring uniformity in branding and ensure transparency in the Fertilizer sector.<\/li>\n\n\n\n<li><strong>PM PRANAM scheme:<\/strong> PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother \u2013 Earth (PMPRANAM) was launched to incentivize States\/ Union Territories to promote alternate fertilizers and balanced use\u00a0 of chemical fertilizers.<\/li>\n\n\n\n<li><strong>Sulfur Coated Urea (Urea Gold)<\/strong> was introduced to overcome the sulfur deficiency in the soil and reduce the input cost of the farmers.\u00a0<\/li>\n\n\n\n<li><strong>Nano Urea:<\/strong> It is a liquid fertilizer developed by IFFCO. It is an alternative to conventional urea.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There is a need to <strong>encourage farmers to adopt balanced nutrient management practices<\/strong> through awareness campaigns and training programmes.<\/li>\n\n\n\n<li><strong>Information on soil health<\/strong>, crop nutrient need and harmful effects of overuse would assist farmers to make informed decisions on fertiliser application.<\/li>\n\n\n\n<li>Promotion of manufacture and use of <strong>alternative and eco-friendly fertilisers such as biofertilizers, green manure, compost etc. <\/strong>will lead to sustainable agricultural methods and reduced dependence on imports.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.moneycontrol.com\/news\/business\/economy\/cabinet-approves-rabi-fertiliser-subsidy-rates-estimated-outlay-rises-64-to-rs-62-370-crore-1\" target=\"_blank\" rel=\"noopener\"><strong>MoneyControl<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context  <\/strong><\/p>\n<li class=\"ms-5\"> The Union Cabinet has approved a subsidy of \u20b962,370.02 crore for fertilisers for the Rabi 2026\u201327 season, 64% higher than the previous year\u2019s allocation of Rs 37,952 crore.\u00a0 <\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\"> \u00a0Coverage: The subsidy applies to Phosphatic and Potassic (P&#038;K) fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS grades. <\/li>\n<li class=\"ms-5\"> Beneficiaries: Fertiliser manufacturers and importers receive the subsidy so that fertilisers remain available to farmers at affordable prices. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/12-11-2026\/fertiliser-subsidy-rabi-season-2026-27 \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-88552","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/88552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=88552"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/88552\/revisions"}],"predecessor-version":[{"id":88556,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/88552\/revisions\/88556"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=88552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=88552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=88552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}