Nutrient Based Subsidy Scheme

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The Union Cabinet approved revised nutrient-based subsidy (NBS) rates on phosphatic and potassic (P&K) fertilisers for the 2025-26 Rabi season.
A total subsidy of ₹37,952 crore was approved for the 2025-26 Rabi season, marking a 55% increase from ₹24,000 crore in 2024-25.

About Nutrient-Based Subsidy Scheme

The Nutrient-Based Subsidy (NBS) is a central sector scheme administered by the Department of Fertilizers under the Ministry of Chemicals and Fertilizers.
Objective: Ensures affordable access to non-urea fertilizers while promoting balanced nutrient use and sustainable soil health.
Subsidy Basis: Provides a fixed subsidy per kilogram of nutrient content for nitrogen (N), phosphorus (P), potash (K), and sulphur (S); urea remains outside the NBS regime.
Pricing System: The pricing of phosphatic and potassic (P&K) fertilisers is decontrolled, allowing Manufacturers and importers to set Maximum Retail Prices (MRPs).
Additional Support: Offers extra subsidies for fertilizers fortified with secondary or micronutrients such as zinc and boron.
DBT Framework: Subsidies are paid to fertilizer companies via the Direct Benefit Transfer (DBT) system, based on retail sales data from PoS devices.
Rate Review: An inter-ministerial committee reviews the NBS rates annually or biannually.