Budget and Subsidy Overview
The tentative budgetary allocation for Rabi 2025-26 stands at approximately ₹37,952 crore, slightly higher than the Kharif 2025 requirement by ₹736 crore. Since 2022–23, over ₹2.04 lakh crore has been allocated under the NBS scheme, supporting both domestic and imported P&K fertilizers and reinforcing affordability for farmers.
Subsidy rates per kilogram of nutrients for Rabi 2025–26 are as follows: Nitrogen (N) ₹43.02, Phosphate (P) ₹47.96, Potash (K) ₹2.38, and Sulphur (S) ₹2.87. Fertilizers fortified with Zinc or Boron receive an additional subsidy of ₹500 and ₹300 per metric tonne, respectively.
Major Fertilizers and Rates
Among the 28 P&K fertilizer grades under the scheme, Di-Ammonium Phosphate (DAP) saw a significant subsidy hike to ₹29,805 per metric tonne, compared to ₹21,911 last year. Other key fertilizers include MOP (₹1,428/MT), SSP (₹7,408/MT), NPK 15-15-15 (₹14,004/MT), and NPS 20-20-0-13 (₹18,569/MT).
Newly added grades such as NPK 11:30:14 fortified with Magnesium, Zinc, Boron, and Sulphur, Urea-SSP (5:15:0:10), and SSP (0:16:0:11) with fortification, provide farmers greater choices for balanced nutrient management.
Operational Management and Compliance
Fertilizer companies must report audited cost data and Maximum Retail Prices (MRP) to ensure transparency. Profit margins are regulated — up to 10% for manufacturers and 12% for integrated producers — with excess profits recovered by the government. Each fertilizer bag must display MRP and applicable subsidy details, and overcharging is a punishable offence under the Essential Commodities Act.
The Integrated Fertilizer Monitoring System (iFMS) tracks production, imports, and distribution in real time. Weekly coordination between central and state authorities ensures timely supply and addresses regional availability issues.
Impact on Agriculture and Soil Health
The NBS Scheme has strengthened domestic fertilizer production, with P&K fertilizer output rising from 112.19 LMT in 2014 to 168.55 LMT in 2025, demonstrating over 50% growth. Improved access to balanced fertilizers has boosted crop yields, with foodgrain productivity increasing from 1,930 kg/ha in 2010–11 to 2,578 kg/ha in 2024–25.
By promoting fortified and balanced fertilizers, the scheme addresses nutrient deficiencies, enhances soil health, and supports sustainable agricultural practices. The initiative aligns with the government’s broader goal of Atmanirbhar Bharat in the fertilizer sector.
Conclusion
The Nutrient-Based Subsidy (NBS) Scheme remains a cornerstone of India’s agricultural policy, ensuring affordable fertilizers, boosting soil fertility, and supporting sustainable crop growth. With enhanced subsidy rates, expanded fertilizer grades, and robust digital monitoring, the government reinforces farmer welfare, domestic production, and overall food security.
