Nutrient Based Subsidy (NBS) Scheme
Syllabus: Govt. Schemes (UPSC Prelims)
Source: PIB
Context
The Union Cabinet, chaired by the Prime Minister, has approved the Nutrient Based Subsidy (NBS) rates for Rabi 2025–26 on Phosphatic and Potassic (P&K) fertilizers to ensure affordable and timely availability to farmers.
About the NBS Scheme
What it is:
The Nutrient Based Subsidy (NBS) is a centrally sponsored scheme that provides a fixed subsidy per kilogram of nutrient content — Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S) — in Phosphatic and Potassic (P&K) fertilizers.
It ensures farmers get fertilizers at affordable rates while promoting balanced nutrient use.
Launch:
Introduced on 1 April 2010, replacing the earlier product-based subsidy system for non-urea fertilizers.
Implementing Agency:
Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India.
Objectives
- Ensure timely and affordable fertilizer availability for farmers.
- Promote balanced fertilizer use based on soil health and crop needs.
- Encourage efficiency, competition, and transparency in the fertilizer industry.
Key Features
- Subsidy Linked to Nutrient Content:
Farmers receive support based on nutrients (₹/kg of N, P, K, S), not specific products. - Market Flexibility:
Fertilizer companies can set Maximum Retail Prices (MRPs) reasonably, under government monitoring. - Coverage:
Applicable to 28 grades of P&K fertilizers, including DAP and NPKS varieties. - Special Packages:
Government may offer additional support (e.g., for DAP) to stabilize prices amid global market fluctuations. - Exclusion of Urea:
Urea remains price-controlled at ₹242 per 45-kg bag since March 2018.
Significance
- Affordable Fertilizers: Ensures steady and subsidized supply of essential nutrients to farmers.
- Balanced Nutrient Use: Prevents overuse of nitrogen-based fertilizers, improving soil health.
- Fiscal Efficiency: Enables transparent and predictable subsidy delivery to fertilizer companies.
- Sustainable Agriculture: Supports nutrient management aligned with long-term soil productivity goals.
