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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved proposed nutrient-based subsidy rates for phosphatic and potassic (P&K) fertilisers. These are two essential types of agricultural fertilisers supplying key nutrients that promote crop growth.

The central government provides a special subsidy on these agricultural inputs to support farmers by ensuring affordable rates.

The proposed rates are for the domestic rabi season, which began on October 1 and ends on March 31.

The tentative budgetary requirement for the current rabi season is estimated at Rs 37,952.29 crore, according to an official statement. This marks a 2.0 per cent increase over the budgetary requirement for the kharif season.

The subsidy enables the availability of affordable fertilisers for farmers, with rates rationalised in accordance with international prices.

The Centre is making available 28 grades of P&K fertilisers -- including DAP -- to farmers at subsidised prices through fertiliser manufacturers or importers. This subsidy -- governed by the NBS Scheme -- is provided to fertiliser companies as per approved and notified rates.

Typically, the kharif season spans from June to October and the rabi season, whereas the rabi season stretches from October through March. The kharif season is aligned with the southwest monsoon in the country -- a period characterised by the majority of rainfall in the country. On the other hand, ​rabi crops benefit from cooler and drier weather conditions.​ Kharif sowing begins with the onset of monsoon rains, whereas rabi sowing is carried out in limited rains during winter months. Examples of kharif crops include rice, maize, cotton and sugarcane, and of rabi crops include wheat, barley, mustard and chickpeas.

Here are answers to a few frequently asked questions (FAQs) on the subject:

What is fertiliser subsidy in India?

The central government provides a dedicated NBS scheme on fertilisers. This subsidy is aimed at supporting farmers by making P&K fertilisers available at affordable prices.

How are the fertiliser rates fixed?

These amounts are fixed annually based on the nutrient content of fertilisers and international price trends.​

Who receives this subsidy?

The subsidy is paid directly to fertiliser manufacturers and importers.

These entities then supply these fertilisers to farmers at capped maximum retail prices.

The government also subsidizes urea fertilisers separately under a controlled pricing system with fixed retail prices.​

What's the significance of the fertiliser subsidy system?

Overall, it is a key government intervention to keep fertilisers affordable, enhance crop yields and sustain farmers’ livelihoods in the country.​