Modi Cabinet approves ₹62,370 crore fertiliser subsidy to protect farmers from war-driven prices
GS3Economy · S&T · Environment · Security· MSP, procurement, PDS & food security· Prelims·
Impact of geopolitical conflicts on agricultural input costs and fiscal policy: a GS3 Agriculture and Economy case study.
Why in news
The Union Cabinet approved a ₹62,370 crore subsidy on phosphatic and potassic (P&K) fertilisers for the Rabi season 2026-27 to shield farmers from price hikes caused by the West Asia crisis and Russia-Ukraine war.
Background
The Union Cabinet approved a ₹62,370 crore subsidy for P&K fertilisers for the Rabi season 2026-27 (October 2026 to March 31, 2027). The DAP rate is fixed at ₹1,350 per bag of 50 kg.
Facts for Prelims
- FactTotal subsidy amount approved for P&K fertilisers for Rabi 2026-27 is ₹62,370 crore
- FactDAP rate is fixed at ₹1,350 per bag of 50 kg
- FactP&K fertilisers include DAP and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades
- BodyDepartment of Fertilisers proposed the Nutrient Based Subsidy (NBS) rates
Prelims practice question
What is the fixed rate for a 50 kg bag of DAP fertiliser as approved in the recent subsidy package?
- (a)₹1,200
- (b)₹1,800
- (c)₹1,500
- (d)₹1,350
Show answer
Answer: (d) ₹1,350 — The Union Cabinet fixed the DAP rate at ₹1,350 per bag of 50 kg for the Rabi season 2026-27.
For Mains
Q. Discuss the impact of geopolitical conflicts on India's agricultural input costs and the role of government subsidies in ensuring food security.
Dimensions to cover in your answer
- Fiscal burden: Balancing high subsidy outlays with fiscal deficit targets
- Supply chain vulnerability: High dependence on imported raw materials for P&K fertilisers
- Price stability: Government intervention as a buffer against global commodity price volatility
Keywords: Nutrient Based Subsidy · Rabi season · Geopolitical turmoil · Food security · Fiscal policy
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.