Cabinet Clears Rs 62,370 Crore Fertilizer Subsidy for Rabi Season

The Union Cabinet has approved a subsidy of Rs 62,370 crore for phosphatic and potassic fertilisers for the rabi season spanning from October 2026 to March 31, 2027. Prime Minister Narendra Modi chaired the meeting that cleared the Department of Fertilisers' proposal to fix these Nutrient Based Subsidy rates.

Causes And Rates

Union Information and Broadcasting Minister Ashwini Vaishnaw announced the decision to reporters in New Delhi on Wednesday. He stated that global fertiliser prices have surged greatly due to the ongoing West Asia crisis and the Russia-Ukraine war. Despite these international conflicts, the government has protected farmers by providing this support. Specifically, the price for a 50 kg bag of DAP will stay fixed at Rs 1,350.

Context

Subsidies on fertilisers like DAP and NPKS grades help keep essential nutrients affordable and easily available for farmers across the country. Such financial support is a common method used by governments to shield domestic agriculture sectors from sudden price spikes in the global raw material market.