The Union Cabinet on Friday approved Nutrient-Based Subsidies (NBS) for the first half of 2025-26 (H1FY26) with an allocation of ₹37,216 crore, highlight of which was a sharp over 41 per cent jump in per-kg subsidy on phosphorus (P) as compared to the rabi season of FY25.
Experts, however, said that despite the sharp spike in per-kg subsidy on phosphorus, it has yet not accounted for the entire loss that companies are bearing in importing Di-Ammonia Phosphate (or DAP that contains the highest almost 46 per cent phosphorus) and that the firms would continue to make a loss of around ₹1,000 on every tonne of DAP imported into India at current landed price.
“This, however, could get adjusted only if global rates come down in coming months,” a senior industry executive said.
DAP is the second most-consumed fertiliser in India after urea.
In a statement in Parliament on Friday, the government said that FY25 Revised Estimate (RE) of fertiliser subsidies now stands at more than ₹1.91 trillion as against the Budget Estimate (BE) of ₹1.68 trillion, a rise of almost 14 per cent.
