With reference to the Nutrient-Based Subsidy (NBS) for fertilisers, consider the following statements: 1. The subsidy specifically covers phosphatic and potassic fertilisers. 2. The subsidy for the rabi 2026-27 season is approved at Rs 62,370.02 crore. 3. The subsidy for rabi 2026-27 is approximately Rs 10,000 crore higher than the rabi 2025-26 requirement. Which of the statements given above is/are correct?

Modi hails Union Cabinet's Rs 62,370.02 crore subsidy for rabi 2026-27 fertilisers

GS3Economy · S&T · Environment · Security· Farm subsidies & support· Prelims· 12 November 2026

Input subsidies and fiscal outlay in agriculture: a relevant GS3 topic regarding food security and price volatility.

Why in news

The Union Cabinet approved Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic fertilisers for the rabi 2026-27 season to shield farmers from global price volatility.

Background

The Union Cabinet approved a subsidy of Rs 62,370.02 crore for the rabi 2026-27 season. This represents an increase of approximately Rs 24,417.73 crore compared to the rabi 2025-26 season requirement.

Facts for Prelims

FactThe approved subsidy for rabi 2026-27 fertilisers is Rs 62,370.02 crore.
FactThe subsidy amount for rabi 2026-27 is Rs 24,417.73 crore higher than the rabi 2025-26 requirement.
FactThe subsidy specifically covers phosphatic and potassic fertilisers.

Prelims practice question

With reference to the Nutrient-Based Subsidy (NBS) for fertilisers, consider the following statements:

The subsidy specifically covers phosphatic and potassic fertilisers.
The subsidy for the rabi 2026-27 season is approved at Rs 62,370.02 crore.
The subsidy for rabi 2026-27 is approximately Rs 10,000 crore higher than the rabi 2025-26 requirement.

Which of the statements given above is/are correct?

(a)2 only
(b)3 only
(c)1 and 2 only
(d)2 and 3 only

Show answer

Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The subsidy is approximately Rs 24,417.73 crore higher.

For Mains

Q. Discuss the significance of the Nutrient-Based Subsidy (NBS) scheme in ensuring food security and protecting farmers from global market fluctuations.

Dimensions to cover in your answer

Fiscal pressure: Balancing high subsidy outlays with the need for fiscal deficit management
Market distortion: Potential for over-consumption of specific nutrients due to heavy subsidies
Supply chain stability: Mitigating international price volatility to ensure input affordability for smallholders

Keywords: Nutrient-Based Subsidy · Fiscal Outlay · Price Volatility · Input Subsidies · Food Security

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