Cabinet approves Nutrient Based Subsidy (NBS) rates for Phosphatic & Potassic (P&K) Fertilisers for the year 2021-22 (from 1st October, 2021 to 31st March, 2022)

IAS Prelims 2023

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2021-22(from 1st October, 2021 to 31st March, 2022).The approved rates for Nutrient Based Subsidy (NBS)shall be as under:

Per Kg Subsidy rates (in Rs.)


N (Nitrogen)

















(i)   Total amount of Rollover will be Rs. 28,602 crore.

(ii) Special one-time package for additional subsidy on DAP at the tentative additional costof Rs. 5,716 crore.

(iii) Special one-time package for additional subsidy on three most consumed NPKs gradesviz. NPK 10-26-26, NPK 20-20-0-13 and NPK 12-32-16 at the tentative cost of Rs. 837crore. Total subsidy requiredwill be 35,115 crore.

The CCEA also approved the inclusion of Potash derived from Molasses (0:0:14.5:0) underthe NBSScheme.


Financial Implications:

Net subsidy required for Rabi 2021-22 after deducting savings will be Rs.28,655 crore.



This will enable smooth availability of all P&K fertilizers to the farmers during Rabi Season 2021-22 at the subsidized  / affordable prices of fertilizers and support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three mostly consumed NPK grades.


lt will give Rs. 438 per bag benefit on Di-Ammonium Phosphate (DAP) and Rs. 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13 & NPK 12-32-16 so as to maintain prices of these fertilizers affordableto the farmers.


Implementation Strategy and targets:

The subsidy on P&K fertilizers will be provided based onthe NBS rates approved by the CCEA to ensure smooth availability of these fertilizers to the farmersat affordable prices.



Government is making available fertilizers, namely Urea and 24 grades of P&K fertilizers tofarmers at subsidized prices through fertilizer manufacturers/ importers. The subsidy on P&Kfertilizers is being governed by NBS Schemew.e.f. 01.04.2010. ln accordancewith itsfarmerfriendlyapproach, the Govt. is committed to ensure the availability of P&K fertilizers to the farmers ataffordable prices. The subsidy would be released to fertilizer companies as per above rates so thatthey can make available fertilizers to farmers at anaffordable price than it would have beenotherwise.



    Source PIB