Fertiliser Subsidy 2026-27: The Central Government has provided significant relief to farmers. A fertiliser subsidy of ₹62,370.02 crore has been approved for the 2026-2027 Rabi season. The primary objective of this government decision is to ensure that farmers can access fertilisers at lower prices, thereby reducing their cultivation costs. This subsidy will be in effect from October 1, 2026, to March 31, 2027. It will primarily benefit farmers cultivating Rabi crops such as wheat, gram (chickpea), mustard, and others.
64% increase in the budget compared to last year
The government has approved a larger allocation for the fertiliser subsidy this year than in the previous Rabi season. For the 2025-2026 Rabi season, the subsidy stood at ₹37,952.29 crore, whereas this year, ₹62,370.02 crore has been sanctioned—an increase of ₹24,417.73 crore over the previous year, representing a rise of approximately 64%.
DAP fertilizer to remain priced at ₹1,350 per bag
As a result of this government decision, farmers will continue to be able to purchase a 50 kg bag of DAP fertiliser for ₹1,350. The subsidy is intended to keep fertiliser prices under control, ensuring that farmers remain insulated from price fluctuations.
Subsidy on fertiliser nutrients
The government has set specific subsidy rates for certain nutrients found in fertilisers. These rates are determined on a per-kilogram basis; for instance, the subsidy for nitrogen (N) is set at ₹94.21 per kilogram. Additionally, the rates are ₹66.11 per kilogram for Phosphorus (P), ₹10.42 per kilogram for Sulphur (S), and ₹2.38 per kilogram for Potash (K). There has been no change in the subsidy for potash.
How will farmers benefit?
This government decision will help farmers obtain fertilisers at lower prices. Farmers will not face any potential rise in fertiliser costs, which will help alleviate the burden of high cultivation expenses. This move by the government serves as a relief for farmers; it aims to ensure the timely availability of fertilisers and encourage agricultural activity.