Rabi Fertiliser Subsidy To Be Rs 62,370 Crore, Up 64% From Last Year, Pg13

Key Highlights:

• The Union Cabinet has approved ₹62,370 crore as fertiliser subsidy for the upcoming Rabi season.
• This represents a 64% increase from the previous year's Rabi subsidy of ₹37,952 crore.
• The subsidy covers Phosphatic and Potassic (P&K) fertilisers, including Di-ammonium Phosphate (DAP), nitrogen, phosphorus, potash, and sulphur.
• The fixed price for a bag of DAP for farmers will be maintained at ₹1,350.
• The subsidy is applicable for the period from October 1, 2026, to March 31, 2027.

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Detailed Insights:

• The substantial increase in the Rabi fertiliser subsidy aims to ensure adequate availability of essential nutrients for farmers and support agricultural productivity.
• The government's decision to keep the DAP price fixed at ₹1,350 per bag shields farmers from the volatility of global fertiliser markets.
• Global fertiliser prices have been significantly impacted by geopolitical events, including a "war in West Asia" and energy shocks, which affect the government's fiscal planning.
• The overall fertiliser subsidy bill for the 2026-27 fiscal year was initially projected at ₹1.71 lakh crore, a decrease from ₹1.86 lakh crore in 2025-26.
• Data from the Controller General of Accounts (CGA) indicates that ₹33,664 crore was spent on Nutrient Fertilisers subsidy in Q1 2026-27, against a budget allocation of ₹54,000 crore.
• This subsidy mechanism operates under the Nutrient Based Subsidy (NBS) scheme, which promotes balanced fertilization by subsidizing P&K fertilisers based on their nutrient content.

Key Concepts Involved:

• Rabi Season: The agricultural cropping season in India from October to March, characterized by crops like wheat, barley, and mustard.
• Phosphatic and Potassic (P&K) Fertilisers: Fertilisers providing phosphorus and potassium, essential macronutrients for plant growth and development.
• Di-ammonium Phosphate (DAP): A widely used complex fertiliser providing both nitrogen and phosphorus to crops.
• Nutrient Based Subsidy (NBS) Scheme: A policy introduced in 2010 to subsidize P&K fertilisers based on their nutrient content, encouraging balanced fertilization.