India’s tentative nutrient-based subsidy outlay for Rabi 2026-27 is approximately ₹62,370.02 crore, more than 64% above the ₹37,952.29 crore allocated for the previous Rabi season, according to a government backgrounder issued on 12 November.
The rates cover phosphatic and potassic fertilizers from 1 October 2026 to 31 March 2027. The government determines subsidy support according to the nitrogen, phosphorus, potassium and sulphur content of 28 fertilizer grades.
Rates for four nutrients
For Rabi 2026-27, the subsidy rates per kilogram are ₹94.21 for nitrogen, ₹66.11 for phosphorus, ₹2.38 for potassium and ₹10.42 for sulphur.
The P&K fertilizer sector remains decontrolled, allowing manufacturers and importers to set reasonable maximum retail prices subject to government oversight. Fertilizer companies receive support under the notified nutrient rates.
The nutrient-based approach has operated since 1 April 2010. Rates are determined twice a year for the Kharif and Rabi seasons, linking support to the nutrient composition of each covered grade rather than applying one uniform amount to every product.
Special provisions continue
The government will continue special provisions for di-ammonium phosphate to maintain its fixed price at ₹1,350 per bag. The support also extends to imported and domestic triple superphosphate and imported monoammonium phosphate.
Freight subsidy will continue for single superphosphate, while imported and domestically produced ammonium sulphate will remain eligible for subsidy.
These provisions sit alongside the regular nutrient rates. The government describes single superphosphate as an affordable alternative to DAP and ammonium sulphate as an alternative to urea, connecting subsidy design with balanced nutrient use.
A sulphur package supports domestic manufacturers. It provides 20% of actual procurement cost for sulphur, subject to a floor price of USD 800 per tonne, and the same percentage for sulphuric acid, subject to a USD 266.67 per-tonne floor.
Stocks increased
The release says stocks of major fertilizers rose from 173.46 lakh tonnes on 10 November 2025 to 235.21 lakh tonnes on 10 November 2026, an increase of approximately 35.6%.
The 2026 total comprised 103.12 lakh tonnes of urea, 28.65 lakh tonnes of DAP, 60.87 lakh tonnes of NPKs, 20.08 lakh tonnes of MOP and 22.49 lakh tonnes of SSP.
The release also reports that more than ₹2.79 lakh crore was disbursed between 2022-23 and 2025-26 for indigenous and imported P&K fertilizers under the scheme. That figure covers the broader multi-year programme rather than the current Rabi outlay alone.
Key numbers
Tentative outlay: ₹62,370.02 crore Rabi coverage: 1 October 2026–31 March 2027 DAP fixed price: ₹1,350 per bag Major fertilizer stocks: 235.21 lakh tonnes Year-on-year stock increase: Approximately 35.6%
What boards and CFOs should note
- How do the four nutrient rates affect subsidy calculations across the 28 covered P&K grades?
- Which product lines qualify for the continuing provisions for DAP, TSP, MAP, SSP or ammonium sulphate?
- How does the rise to 235.21 lakh tonnes of stock affect procurement and distribution planning for the Rabi period?
Source: Government of India via PIB, 12 November 2026. This is a summary of an official release, published as general information. It is not legal, tax or investment advice.
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