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RAS question

With reference to the Nutrient Based Subsidy (NBS) rates for Kharif 2026 approved by the Union Cabinet, which of the following is correct?

Correct answer: (C) The approved outgo is about ₹41,533.81 crore and covers 28 grades of phosphatic and potassic fertilizers from 1 April to 30 September 2026..

For Kharif 2026, the Union Cabinet approved about Rs 41,533.81 crore under the Nutrient Based Subsidy scheme for 28 grades of phosphatic and potassic fertilisers, applicable from 1 April to 30 September 2026.

  1. (A)

    The scheme covers only nitrogen-based urea and excludes all phosphatic and potassic fertilizers.

  2. (B)

    The subsidy is paid directly to farmers through DBT before the sale of any fertilizer.

  3. (C)

    The approved outgo is about ₹41,533.81 crore and covers 28 grades of phosphatic and potassic fertilizers from 1 April to 30 September 2026.

  4. (D)

    The scheme replaces the MSP regime for all food grains and is implemented by the Ministry of Agriculture.

Explanation

The correct statement is the one that captures both the scale and the scope of the Cabinet decision. The PIB release says the Union Cabinet approved the Department of Fertilizers' proposal to fix Nutrient Based Subsidy rates for Kharif 2026 on phosphatic and potassic fertilisers for the period from 1 April to 30 September 2026. The tentative budgetary requirement is about Rs 41,533.81 crore. The release also states that the government makes 28 grades of P&K fertilisers, including DAP, available to farmers at subsidised prices through fertiliser manufacturers and importers. Payment is made after authenticated point-of-sale, so the subsidy route is not a pre-sale cash transfer to farmers.

Why the other options are wrong

  • (A) NBS for this decision is on phosphatic and potassic fertilisers, including DAP and NPKS grades, not a scheme limited to nitrogen-based urea.
  • (B) The subsidy is routed to fertiliser manufacturers or importers, with payment after authenticated point-of-sale, not direct pre-sale DBT to farmers.
  • (D) The decision concerns fertiliser subsidy rates under the Department of Fertilizers and does not replace the MSP regime for food grains or belong to the Ministry of Agriculture.

Concept

This tests subsidy design in Indian Economy: who receives the subsidy, which inputs are covered, and which ministry administers the scheme. RAS repeats such questions because fertiliser subsidy combines fiscal outgo, agriculture input markets, and welfare targeting.

Source

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