The Union Cabinet sanctioned Nutrient-Based Subsidies (NBS) for the first half of the fiscal year 2025-26 (H1FY26), with a budget allocation of Rs 37,216 crore.
A notable aspect of this approval is the significant increase of over 41 percent in the per-kilogram subsidy for phosphorus (P) compared to the rabi season of FY25.
Experts have indicated that, although there has been a significant increase in the per-kilogram subsidy for phosphorus, it still does not fully compensate for the losses incurred by companies importing Di-Ammonium Phosphate (DAP), which contains nearly 46 percent phosphorus.
As a result, these firms are expected to continue facing a loss of approximately Rs 1,000 for each tonne of DAP imported into India at the current landed price.
A senior industry executive stated that this adjustment could only occur if global rates decrease in the upcoming months.
