Centre Sanctions Rs 37,952 Crore Nutrient-Based Subsidy to Shield Farmers from Fertilizer Price Hikes: Kishan Reddy
In a statement here, Union Minister for Coal and Mines G Kishan Reddy said the decision, taken under the leadership of Prime Minister Narendra Modi,
Hyderabad: The Union Cabinet today approved the implementation of the Nutrient-Based Subsidy (NBS) scheme worth Rs 37,952 crore for the 2025–26 Rabi season to support fertilizer manufacturing companies and protect farmers from the impact of rising international fertilizer prices.
In a statement here, Union Minister for Coal and Mines G Kishan Reddy said the decision, taken under the leadership of Prime Minister Narendra Modi, reflects the Center’s commitment to ensuring affordable fertilizers for farmers while easing financial pressure on manufacturers.
He explained that despite global price surges caused by the pandemic and ongoing geopolitical tensions, the Central Government has consistently absorbed the additional cost to keep fertilizer prices stable.
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“Even when international rates soared, the government ensured that farmers continued to get a 50 kg DAP bag for just Rs 1,350,” he said.
The NBS scheme will cover around 28 types of NPKS complex fertilizers, including Di-Ammonium Phosphate (DAP), Mono-Ammonium Phosphate (MAP), Muriate of Potash (MOP), Triple Super Phosphate (TSP), various grades of Single Super Phosphate (SSP), Potash Derived Molasses (PDM), and Ammonium Sulfate (AS).
Kishan Reddy highlighted that the Center’s allocation would offset a nearly 25 per cent increase in fertilizer input costs recorded between March and July 2025. “Funds are being released in phases to ensure manufacturers are compensated and farmers remain unaffected,” he said.
He also pointed out that the Modi government had successfully maintained fertilizer supplies even during the Russia–Ukraine conflict, preventing shortages across the country.
“In Telangana alone, against the Kharif season demand of 9.8 lakh MT, the Center ensured the availability of 10.28 lakh MT of fertilizers,” he noted.
Kishan Reddy further said that the revival of the Ramagundam Fertilizer and Chemicals Limited (RFCL) unit has strengthened local supply.
“Production, which was halted due to a gas leak in August, resumed from Dussehra day at 90 per cent capacity. Of this, 45 per cent output has been allocated for Telangana farmers,” he said, expressing gratitude to workers involved in restoring operations.
He added that the Center remains steadfast in its goal of ensuring no farmer faces fertilizer scarcity under any circumstance.
