Journalism of Courage
‘West Asia conflict effect kept in mind’: Cabinet clears 12% hike in P&K fertiliser subsidy
India relies on imports of raw materials to meet its fertiliser requirement due to limited domestic reserves.
Union Minister Ashwini Vaishnaw speaks during a Cabinet briefing. (ANI Photo)
The Cabinet, chaired by PM Narendra Modi, on Wednesday approved the new Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers, with the total subsidy outlay for the Kharif 2026 season pegged at Rs 41,533 crore, which is 11.60% higher than the last year’s Rs 37,216.15 crore.
During a media briefing on the Cabinet decisions, Union I&B Minister Ashwini Vaishnaw said the government is committed to insulate Indian farmers from global price volatility due to the West Asia war. “It is clear that the West Asia conflict has had an effect on this [fertilisers]…That has been kept in mind when today’s approval was done… There has been no question mark on the availability of fertiliser anywhere in the country.”
India relies on imports of raw materials to meet its fertiliser requirement due to limited domestic reserves. This includes intermediates such as phosphoric acid, rock phosphate, sulphur, ammonia and muriate of potash for P&K fertilisers, as well as natural gas for urea production.
In 2024-25, India imported 56.47 lakh metric tonnes of urea, mainly from Oman, Russia, Saudi Arabia; 45.69 lakh metric tonnes of Di-ammonium Phosphate (DAP), primarily from Saudi Arabia, Morocco, China; 35.41 lakh metric tonnes of muriate of potash mainly from Russia, Canada, Jordan; and 22.72 lakh metric tonnes of NPK, mainly from Russia and Saudi Arabia.
According to an official statement after the Cabinet meeting, “The tentative budgetary requirement for Kharif season 2026 would be approximately Rs.41,533.81 crore. This is approximately Rs 4,317 crore more than the budgetary requirement for the Kharif 2025 season. The budget for Kharif 2025 was Rs 37,216.15 crore.”
“Availability of fertilisers to farmers at subsidised, affordable and reasonable prices will be ensured,” it said.
The subsidy rates for Kharif 2026 have been fixed at Rs 47.32 per kg for N (Nitrogen), Rs 52.76 per kg for P (Phosphorus), Rs 2.38 per kg for Potash (K), and Rs 3.16 per kg for Sulphur. Phosphorus, Nitrogen and Sulphur have seen a major rise in rates. The new rates will be effective from April 1 till September 30.
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In 2025 Kharif season, the government had pegged the urea requirement at 185.39 lakh tonnes, DAP 56.99 lakh tonnes, Muriate of Potassium 11.13 lakh tonnes, and NPKS 76.11 lakh tonnes.
(With inputs from Damini Nath)
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