Cabinet Hikes Nutrient-Based Subsidy (NBS) For Kharif Season 2026; Fertilizer Stocks In Focus

Fertilizer stocks will be in focus on Thursday after the Union Cabinet approved the Department of Fertilizers' proposal to fix the Nutrient Based Subsidy (NBS) rates for the KHARIF Season. This year, the season began on April 1, 2026, and will end on September 9, 2026. The Cabinet chaired by Prime Minister Narendra Modi hiked the NBS fertilizer subsidy by 21% to Rs 41,533.81 crore for 2026 compared to the previous budget of Rs 37,216.15 crore.

The main goal in the 2026 season is to ensure availability of fertilizers to farmers at subsidized, affordable and reasonable prices.

What Is Nutrient Based Subsidy?

The government's NBS subsidy scheme is launched with an objective to promote the balanced use of essential nutrients, such as nitrogen, phosphorus, potassium, and sulphur, thereby helping farmers avoid over-dependence on any single fertilizer and maintain soil health while improving productivity.

Apart from ensuring availability of fertilizers at affordable prices, the scheme also fosters healthy competition among fertilizer companies, driving improvements in quality, innovations, and efficiency in the fertilizer market.

Kharif Season 2026 Nutrient-Based Subsidy Rates:

As per the Cabinet's statement, the Government is making available 28 grades of P&K fertilizers including DAP to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by the NBS Scheme with effect from April 1, 2010. In accordance with its farmer-friendly approach, the Government is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices.

The statement added, "In view of the recent trends in the international prices of fertilizers & inputs like Urea, DAP, MOP and Sulphur, Government has decided to approve the NBS rates for Kharif 2026 effective from 01.04.2026 to 30.09.2026 on Phosphatic and Potassic (P&K) fertilisers including DAP and NPKS grades."

"The subsidy would be provided to the fertilizer companies as per approved and notified rates so that fertilizers are made available to farmers at affordable prices," it said.

Fertilizer Stocks:

Following the latest decisions, fertilizer stocks will be in focus on Thursday. Notably, this sector witnessed sharp buying momentum on April 8 as well.

Stocks like Chambal Fertilisers, Coromandel International, Deepak Fertilisers, FACT, Gujarat Narmada, Gujarat State Fertilisers, National Fertilizers, Paradeep Phosphate, RCF and Tata Chemicals stocks jumped by 3% to 7% on Wednesday. Only Mangalore Chemicals' stock price ended in red.

Disclaimer:The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions