Nutrient-Based Subsidy (NBS) Scheme
Why in News?
The Union Cabinet approved NBS rates for P&K fertilizers for Rabi 2025-26 (October 1, 2025, to March 31, 2026), with a tentative budget of ₹37,952.29 crore—₹736 crore more than Kharif 2025.
About
- Launched on April 1, 2010, by the Department of Fertilizers, Ministry of Chemicals and Fertilizers, as a central sector scheme.
- Covers subsidies on nutrients Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S) in P&K fertilizers, excluding urea (which has a fixed MRP of ₹242 per 45-kg bag).
- Fertilizer companies fix Maximum Retail Price (MRP) at reasonable levels under a decontrolled regime, with subsidies passed directly to farmers via bag labelling.
Key Features
- Fixed subsidy rates revised annually/bi-annually per kg of nutrient (Rabi 2025-26: P at ₹47.96/kg, up 10%; S at ₹2.87/kg, up 62%; N and K unchanged).
- Now includes 28 grades (up from 25 pre-Kharif 2024), adding NPK (11:30:14) with micronutrients, Urea-SSP (5:15:0:10), and SSP (0:16:0:11) fortified variants.
- Ensures F.O.R. (Freight on Road) delivery to retail points; profit margins capped (8-12% based on importer/manufacturer type).
Objectives and Significance
- Promotes balanced fertilizer use to enhance soil health, crop productivity, and sustainability, reducing nitrogen overuse.
- Ensures affordable, continuous supply; boosts domestic P&K production (up 50% to 168.55 LMT by late 2025); foodgrain yields rose from 1,930 kg/ha (2010-11) to 2,578 kg/ha (2024-25).
- Enhances transparency via iFMS for tracking production, movement, and DBT; over ₹2.04 lakh crore allocated in 2022-25.
Monitoring and Compliance
- Companies submit audited costs; excess profits recovered; MRP/subsidy displayed on bags (violations punishable under Essential Commodities Act, 1955).
- Weekly state coordination and digital tracking via iFMS for supply plans and issue resolution.
- Focuses on fiscal discipline amid import dependence (90% phosphates, 100% potash).
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