The Union Cabinet approved nutrient-based subsidy rates for phosphatic and potassic fertilizers for the Rabi 2025-26 season. The tentative budgetary requirement is about ₹37,952 crore. Compared with ₹24,475.53 crore for Rabi 2024, the increase works out to about 55.06%, so the decision is described as an approximately 55% rise.
The decision applies to the Rabi season from 01.10.2025 to 31.03.2026. It covers phosphatic and potassic fertilizers, including DAP and NPKS grades. Under the approved arrangement, subsidy is provided to fertilizer companies at notified rates so that these fertilizers are available to farmers at affordable prices. The rates were approved in view of trends in the international and domestic fertilizer market and input prices such as urea, DAP, MOP and sulphur.
For exam preparation, this issue connects Indian Economy with Governance. In economy, it is relevant to agricultural costs, subsidy expenditure, fiscal management and farmers' input costs. In governance, it involves Union Cabinet approval, the Ministry of Chemicals and Fertilizers' scheme framework, and the delivery of support through fertilizer companies. For static GK, remember the core idea of the Nutrient-Based Subsidy scheme: it has been effective from 01.04.2010 and links subsidy to nutrients such as nitrogen, phosphorus, potassium and sulphur contained in fertilizers. In RAS and UPSC-style preparation, the topic can appear in prelims as a scheme-fact question and in mains through agriculture policy, farmer welfare and rational subsidy design.