Context
Recently, the Union Government approved the Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilisers for the Rabi 2026-27 season.
About the Nutrient-Based Subsidy (NBS) Scheme
- Launch: Implemented with effect from 1 April 2010.
- Nodal Ministry: Ministry of Chemicals and Fertilizers.
- Objective: To promote balanced fertiliser use by linking subsidies to the nutrient content of fertilisers.
- Nutrients Covered: Nitrogen (N), Phosphorus (P), Potassium (K) and Sulphur (S).
- Coverage: 28 grades of Phosphatic and Potassic (P&K) fertilisers.
- Urea remains outside the NBS regime under a separate statutory price-controlled mechanism.
- Subsidy Mechanism: Subsidy rates are determined separately for Kharif and Rabi seasons, generally twice a year.
- Pricing Mechanism: The P&K fertiliser sector operates under a decontrolled regime, wherein manufacturers and importers determine the Maximum Retail Price (MRP) at reasonable levels, subject to government oversight.
- Beneficiaries: Fertiliser companies receive government-approved subsidies, which help farmers access fertilisers at affordable prices.
Special Provisions for Rabi 2026-27
- Di-Ammonium Phosphate (DAP): Special provisions continued to ensure DAP availability at a fixed price of ₹1,350 per bag, over and above the regular NBS subsidy.
- Other Phosphatic Fertilisers: Special provisions extended to imported and domestic Triple Superphosphate (TSP) and imported Monoammonium Phosphate (MAP).
- Single Superphosphate (SSP): Freight subsidy continued to promote SSP as an affordable alternative to DAP.
- Ammonium Sulphate: Subsidy continued for both imported and domestically produced Ammonium Sulphate.
- Sulphur Package: Provides support exclusively to domestic manufacturers of Sulphur and Sulphuric Acid:
Significance of the NBS Scheme
- Balanced Fertilisation: Encourages the judicious use of nitrogen, phosphorus, potassium and sulphur in accordance with soil and crop requirements.
- Soil Health: Helps maintain soil fertility and reduces nutrient imbalances caused by excessive use of particular fertilisers.
- Domestic Production: Supports domestic fertiliser manufacturers and strengthens indigenous production capabilities.
- Import Dependence: Encourages domestic production and reduces vulnerability to fluctuations in international fertiliser prices.
- Food Security: Helps stabilise agricultural input costs and supports sustainable agricultural production.
Conclusion
The NBS Scheme is an important policy instrument for ensuring affordable fertiliser availability while promoting balanced nutrient application and sustainable agriculture. The revised Rabi 2026-27 rates and continued special provisions seek to strengthen domestic fertiliser production, support farmers and maintain agricultural productivity.
| Important CTC From This Article: Nutrient-Based Subsidy (NBS) Scheme | Phosphatic and Potassic (P&K) Fertilisers |