Centre Boosts Fertilizer Subsidy by Rs 736 Crore for Rabi Season

As per the government statement, the increase comes as international prices of fertilizers and raw materials remain uncertain.

To prevent these costs from being passed on to farmers, the government sharply enhanced subsidies under the Nutrient-Based Subsidy (NBS) scheme, especially for Di-Ammonium Phosphate (DAP), whose subsidy jumped to Rs 29,805 per tonne, up from Rs 21,911 last year.

The move aims to ensure the continued availability of fertilizers at affordable prices for farmers during the peak sowing season for wheat, oilseeds and pulses.

Unlike earlier fertilizer regimes that encouraged heavy urea use, the NBS framework links subsidies to nutrient content, nitrogen, phosphorus, potash and sulphur (NPKS), nudging farmers towards balanced fertilization. This shift matters because years of nitrogen-heavy application have degraded soil health and limited yield gains in many regions.

Government data suggests this approach is paying off. Foodgrain productivity has risen from 1,930 kg per hectare in 2010-11 to 2,578 kg per hectare in 2024-25, a period that broadly overlaps with the expansion of the NBS scheme.

Between 2022-23 and 2024-25, the Centre spent over Rs 2.04 lakh crore on NBS subsidies. Critics question whether such spending is fiscally sustainable. Supporters counter that higher yields, better soil health and reduced import dependence, domestic P&K fertilizer production has grown over 50% since 2014, justify the outlay.

The Government of India introduced the Nutrient-Based Subsidy (NBS) scheme, effective from April 1, 2010. The scheme represented a significant policy shift in the fertilizer sector, designed to make fertilizers available to farmers at subsidized, affordable, and fair prices, while simultaneously encouraging their balanced and efficient use.

Under the NBS framework, subsidies are determined based on the nutrient content of fertilizers, primarily NPKS: Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S). This approach not only encourages balanced nutrient application but also empowers farmers to make informed choices that align with the specific needs of their soil and crops.

By promoting the use of secondary and micronutrients, the scheme also addresses issues of soil degradation and nutrient imbalance that have emerged from years of skewed fertilizer usage.

- ANI