India's Union Cabinet Approves Kharif 2026 Fertiliser Subsidy
Analysis based on 8 articles · First reported Apr 08, 2026 · Last updated Apr 08, 2026
The approval of higher fertiliser subsidies by the India===Union Cabinet is expected to stabilize agricultural input costs for farmers in India, potentially boosting farm output and rural incomes. However, it will also increase the government's fiscal burden, especially given the volatility in global prices of commodities like Diammonium phosphate, Muriate of potash, Urea, and Sulfur.
The India===Union Cabinet of India has approved Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for the Kharif 2026 season, covering April 1 to September 30, 2026. The tentative subsidy outlay is set at ₹41,533.81 crore, an increase of about ₹4,317 crore from the previous Kharif season. This decision aims to ensure the availability of fertilisers like Diammonium phosphate, Muriate of potash, Urea, and Sulfur to farmers at affordable prices, insulating them from global price volatility, which has been exacerbated by geopolitical tensions such as the West Asia war. The government provides subsidised access to 28 grades of P&K fertilisers through manufacturers and importers. The subsidy rates for nitrogen and phosphorus have been hiked, while potash remains unchanged, and sulphur's subsidy increased. India's high dependence on imports for fertilisers and raw materials like rock phosphate from countries including Russia, Israel, Belarus, Jordan, Senegal, South Africa, and Morocco makes this subsidy crucial for agricultural stability. CRISIL Ratings estimates a potential increase in India's fertiliser subsidy bill if the West Asia conflict persists.
Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.
Open Dashboard