Cabinet approves Rabi 2026-27 subsidy rates for DAP and other P&K fertilisers

What was decided

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, on 11 November 2026 approved nutrient-based subsidy (NBS) rates for phosphate and potash (P&K) fertilisers for Rabi 2026-27. The subsidy will apply from 01.10.2026 to 31.03.2027.

The decision was taken in view of recent trends in international prices of fertilisers and raw materials. According to the release, subsidy on P&K fertilisers has been rationalised.

Who benefits

Farmers who buy fertilisers such as DAP and NPKS grades in the Rabi season will benefit. The government says fertilisers will be made available to farmers at subsidised, affordable and reasonable prices.

Subsidy will be given to fertiliser companies at approved and notified rates so that farmers get fertiliser at subsidised prices. Farmers do not have to do any paperwork; they buy from the dealer as usual.

How much budget is set

The estimated budgetary need for Rabi 2026-27 is about Rs 62,370.02 crore. This is about Rs 24,417.73 crore more than the need for Rabi 2025-26. The budget for Rabi 2025-26 was Rs 37,952.29 crore.

What was already in place

The government is providing 28 grades of P&K fertilisers, including DAP, to farmers at subsidised prices through fertiliser manufacturers and importers. Subsidy on P&K fertilisers has been governed by the NBS scheme since 01.04.2010.

NBS means Nutrient Based Subsidy, under which subsidy is fixed on the basis of nutrients present in the fertiliser. The release also says the government is committed to ensuring P&K fertilisers reach farmers at affordable prices.

What to do next

Farmers do not need to apply separately for this decision. When buying fertiliser, take a receipt from the dealer and ask about the price there. The notice does not give the actual new subsidy rates; for those, check the Department of Fertilizers notification or ask your nearest agriculture office.