‘West Asia conflict’s effect kept in mind’: Cabinet approves 12% hike in P&K fertiliser subsidy, Pg7

Key Highlights:

• Cabinet approved a 12% hike in the Nutrient Based Subsidy (NBS) for Phosphatic and Potassic (P&K) fertilizers.
• Total subsidy outlay for Kharif 2026 is estimated at Rs 41,533 crore, an increase from last year's Rs 37,216.15 crore.
• The decision aims to shield Indian farmers from global price fluctuations due to the West Asia conflict.
• Subsidy rates for Kharif 2026 include Rs 47.32/kg for Nitrogen, Rs 52.76/kg for Phosphorus, Rs 2.38/kg for Potash, and Rs 3.16/kg for Sulphur.

Detailed Insights:

• The Nutrient Based Subsidy (NBS) scheme ensures fertilizers are available to farmers at subsidized rates.
• India heavily relies on imports for fertilizer raw materials like phosphoric acid, rock phosphate, and muriate of potash.
• In 2024-25, India imported significant quantities of urea, Di-ammonium Phosphate (DAP), muriate of potash, and NPK from countries like Oman, Russia, Saudi Arabia, Morocco, Canada, and Jordan.
• Increased subsidy rates for Nitrogen, Phosphorus, and Sulphur reflect rising input costs and geopolitical factors.
• The subsidy rates are effective from April 1 to September 30, covering the Kharif 2026 season.

Key Concepts Involved:

• Nutrient Based Subsidy (NBS): A scheme providing subsidies on phosphatic and potassic fertilizers based on their nutrient content.
• Kharif Season: The crop sowing and harvesting season during the monsoon, typically from June to October.
• Muriate of Potash (MOP): A potassium-containing salt used as a fertilizer and a key import for India.