India Approves 62,370 Crore Fertiliser Subsidy for Rabi Season

Prime Minister Narendra Modi announced that the Union Cabinet approved nutrient-based subsidies on phosphatic and potassic fertilisers for the 2026-27 rabi season. Effective from October 1, 2026, to March 31, 2027, the measure allocates approximately 62,370.02 crore to ensure 28 grades of fertilisers remain affordable for domestic cultivators. This represents a significant increase of roughly 24,417.73 crore over the previous season's budget.

When combined with the 41,534 crore kharif 2026-27 subsidy, the total fiscal year 2027 allotment reaches approximately 1.04 trillion, exceeding original budget estimates by 92.41%. The most substantial increase applies to sulphur, where the per-kilogram subsidy rose by over 260% to 10.42. The government also introduced a special procurement package for sulphur and extended provisions for imported and domestic triple super phosphate and imported mono-ammonium phosphate.

The intervention follows a 43.4% drop in domestic complex fertiliser production in September 2026, which industry leaders attributed to inadequate subsidy support. The Fertiliser Association of India welcomed the revision, noting it would allow companies to correct prices for NP and NPK grades. Government officials stated the move shields farmers from geopolitical turmoil and international price fluctuations while encouraging balanced nutrient application over the overuse of DAP.