Phosphatic and Potassic (P&K) Fertilizers
Why in News?
The Phosphatic and Potassic (P&K) fertilizers are recently in the news because the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a major subsidy hike on April 8, 2026, to protect farmers from global price volatility.
About
- Subsidy Hike: The Cabinet approved a ₹41,533.81 crore outlay for the Nutrient Based Subsidy (NBS) scheme.
- Response to Conflict: The 12% increase (₹4,317 crore more than last year) was specifically designed to shield farmers from rising costs caused by the West Asia conflict, which has disrupted supply chains for potash and sulphur.
- Price Shield: Union Minister Ashwini Vaishnaw stated that the government will absorb the international price shocks so that the Maximum Retail Price (MRP) for farmers remains affordable.
The Nutrient Based Subsidy (NBS) Scheme
- Launch: Implemented on April 1, 2010, to move away from product-specific subsidies.
- Mechanism: The government provides a fixed subsidy per kilogram of nutrients: Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S).
- Coverage: It applies to 28 grades of P&K fertilizers, including the widely used Di-Ammonium Phosphate (DAP) and various NPK complexes.
- Retail Pricing: Unlike Urea (which has a fixed MRP), P&K fertilizer prices are "decontrolled," but the government monitors them to ensure they are "reasonable."
New Subsidy Rates (Kharif 2026)
The revised per-kilogram subsidy rates for the current season are:
- Nitrogen (N): ₹47.32 per kg
- Phosphate (P): ₹52.76 per kg
- Sulphur (S): ₹3.16 per kg
- Potash (K): ₹2.38 per kg (held steady)
Global Dependency
- Import Reliance: India is heavily dependent on imports for P&K fertilizers. It imports roughly 100% of its Potash (MOP) and over 90% of its Phosphatic raw materials.
- Key Suppliers: Major imports come from Morocco, Saudi Arabia, Jordan, Canada, and Belarus.
- Strategic Buffers: To ensure supply, the government has entered long-term agreements with countries like Morocco and Saudi Arabia for nearly 4 million tonnes of imports annually.
Major Achievements & Impact
- Production Growth: Domestic production of P&K fertilizers has increased by over 50% since 2014, reaching approximately 168 LMT.
- Soil Health: The scheme promotes balanced fertilization, which has helped increase average foodgrain yields from 1,930 kg/hectare in 2011 to over 2,578 kg/hectare today.
- Self-Reliance: Efforts are being made to promote Potash Derived from Molasses (PDM) and Single Super Phosphate (SSP) to reduce dependency on foreign imports.
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