The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 37,216 crore subsidy for phosphatic and potassic (P&K) fertilizers on Friday, ensuring affordable access for farmers during the Kharif 2025 season (April to September).

The decision, announced by Union Minister Ashwini Vaishnaw, aims to shield cultivators from global price swings and sustain crop yields across India’s 140 million hectares of farmland.

The Nutrient Based Subsidy (NBS) scheme, in place since 2010, will channel this aid to keep prices steady—urea at Rs 276 per bag and diammonium phosphate (DAP) at Rs 1,350 per bag—despite volatile import costs for nutrients like nitrogen, phosphorus, potash, and sulphur.

The subsidy, up from Rs 24,420 crore for Kharif 2024, reflects rising demand and a push for newer NPKS fertilizer grades to bolster soil health. Roughly 12 crore farmers are expected to benefit, with the government footing an average of Rs 21,000 per cultivator annually.

India, the world’s second-largest fertilizer consumer at over 55 million metric tons yearly, relies heavily on imports for 60% of DAP and 25% of urea needs. The move aligns with the ‘Aatmanirbhar Bharat’ vision, balancing subsidies with efforts to ramp up domestic production via initiatives like nano urea plants by 2025-26.

As Kharif sowing nears, the Cabinet’s hefty payout signals unwavering support for agriculture amid looming climate risks like El Niño, ensuring food security stays on track.