The Union Cabinet has approved the proposal by the Department of Fertilizers to fix the Nutrient-Based Subsidy (NBS) rates for the Kharif season 2025. The subsidy will be applicable from April 1, 2025, to September 30, 2025, covering Phosphatic and Potassic (P&K) fertilizers to ensure affordability for farmers across the country. This press release was issued on March 28, 2025.
Budget Allocation
For the upcoming Kharif season 2025, the government has allocated approximately Rs. 37,216.15 crore under the NBS scheme. This marks an increase of Rs. 13,000 crore compared to the budgetary requirement for the Rabi season 2024-25, demonstrating the government’s commitment to supporting the agricultural sector.
Key Benefits of the Approved Subsidy
- Farmers will have access to fertilizers at subsidized, affordable, and reasonable prices.
- The subsidy aims to rationalize the prices of P&K fertilizers, taking into account fluctuations in international prices of fertilizers and raw materials.
- The subsidy ensures the smooth availability of NPKS grades and other P&K fertilizers, fostering increased agricultural productivity.
Implementation Strategy
The subsidy will be provided to fertilizer manufacturers and importers at approved rates to ensure that farmers receive fertilizers at controlled prices. The scheme will cover 28 grades of Phosphatic and Potassic fertilizers, making them available across India through an extensive distribution network.
Background on the NBS Scheme
The Nutrient-Based Subsidy (NBS) Scheme, introduced on April 1, 2010, is designed to regulate fertilizer prices while ensuring availability to farmers. The policy aligns with the government’s farmer-friendly approach by adjusting subsidy rates based on global fertilizer price trends. Given the recent volatility in international prices of Urea, DAP, MOP, and Sulphur, the government has strategically revised the NBS rates for Kharif 2025 to stabilize domestic fertilizer costs.
