Cabinet approves Rs 37,216 cr subsidy on phosphatic, potassic fertilisers

New Delhi: To provide soil nutrients to farmers at a reasonable rate, the Centre on Friday approved a Rs 37,216 crore subsidy on phosphatic and potassic (P&K) fertilisers for the Kharif (summer-sown) season this year.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a proposal to fix the Nutrient-Based Subsidy (NBS) rates for Kharif season 2025 (from April 1, 2025, to September 30, 2025) on Phosphatic and Potassic (P&K) fertilisers. Information and Broadcasting Minister Ashwini Vaishnaw told reporters here.

The decision will ensure "availability of fertilisers to farmers at subsidised, affordable and reasonable prices will be ensured".

The budgetary requirement for the Kharif season will be Rs 37,216.15 crore, the Minister said, adding that the government has ensured that the retail prices of DAP (Di-ammonium phosphate) remain at the present level.

The subsidy fund requirement for the Kharif season is around Rs 13,000 crore, more than the budgetary requirement for Rabi seasons 2024-25.

The subsidy on P&K fertilisers, including NPKS grades, will be provided based on approved rates for Kharif 2025. The subsidy would be provided to the fertiliser companies, as per approved and notified rates so that nutrients are made available to farmers at affordable prices.

The Cabinet has approved per kg subsidy rate at Rs 43.02 for N (nitrogen); Rs 43.60 for P (phosphorus); Rs 2.38 for K (potash); and Rs 2.61 for S (sulphur) for Kharif season this year.

The rates for N and K are the same as it was for the Rabi season. However, the subsidy rate for P has been significantly enhanced to Rs 43.6 per kg from 30.80 per kg and the rate for S has been raised to Rs 2.61 from Rs 1.76 per kg, the statement said.