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Nutrient Fertiliser Subsidy Outlay Exceeds FY27 Estimates by 92%
Sentiment: NeutralHigh Priority
What Happened?
The Union Cabinet has raised nutrient fertiliser subsidy rates for the rabi 2026-27 season, leading to a total outlay of ₹1.04 trillion, significantly above initial estimates. This increase is driven by high global fertiliser prices and aims to support farmers amid rising input costs.
Key points
- The revised subsidy rates will result in an outlay of ₹62,370.02 crore for the rabi season.
- Sulphur subsidy increased by over 260% from the previous rabi season.
- Total NBS allotment for FY27 is around ₹1.04 trillion, 92.41% higher than the Budget Estimate of ₹54,000 crore.
- The government has introduced a special package for sulphur to mitigate rising input costs.
- Domestic production of complex fertilisers fell 43.4% in September 2026 compared to targets.
Key insights
- The increase in subsidy rates may lead to a more balanced consumption pattern of fertilisers among farmers.
- Higher subsidies could encourage domestic production of complex fertilisers, which has recently declined.
- The government's support for sulphur may help mitigate the impact of rising input costs on farmers.
Why it matters
This subsidy increase could help farmers manage rising costs and stabilize fertiliser prices.
Tags
Entities
Narendra Modi· PersonAshwini Vaishnaw· PersonIndia· Country
Source
Business Standard
