The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a substantial ₹62,370 crore subsidy on Phosphatic and Potassic (P&K) fertilisers for the upcoming Rabi season 2026–27.
Briefing reporters after the Cabinet meeting, Union Minister for Information and Broadcasting Ashwini Vaishnaw emphasised the government’s commitment to standing by agricultural producers despite rising international costs. He noted that international fertiliser prices have escalated drastically due to ongoing geopolitical instability, particularly the Russia-Ukraine war and conflicts in West Asia.
“The Modi government has provided a shield to farmers from geopolitical turmoil,” Vaishnaw stated, adding that the subsidy is designed to absorb global cost surges so that the financial burden does not shift onto the farmers.
A key highlight of the Cabinet decision is the price stabilisation of Di-Ammonium Phosphate (DAP). Despite severe pressures on international input costs, DAP will continue to be made available to farmers at the unchanged rate of Rs 1,350 per 50 kg bag.
Under the revised NBS structure, the central government directly releases approved subsidy amounts to manufacturers and importers, maintaining smooth distribution pipelines across all agricultural regions. The move is expected to boost soil productivity, maintain crop output for winter-sown staples, and provide financial safety to millions of farm households across the country.
