Prime Minister Narendra Modi chairs a Union Cabinet meeting in New Delhi, where key decisions on fertiliser subsidies and credit support schemes were approved. (Representational image)

Amid a sharp surge in fertiliser prices due to the West Asia crisis and the Russia-Ukraine war, the Centre on Wednesday announced a `62,370 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season 2026-27, providing relief to farmers.

The Union Cabinet also approved a `5,000-crore credit guarantee fund under the PM Mudra scheme, extending the Credit Guarantee Fund for Micro Units (CGFMU) by five years, till March 2031.

Chaired by Prime Minister Narendra Modi, the Union Cabinet cleared the department of fertilisers' proposal to fix nutrient based subsidy (NBS) rates for October 1, 2026, to March 31, 2027.

Under the NBS scheme, the government pays a fixed subsidy per kg of nutrient -- nitrogen (N), phosphorus (P), potash (K) and sulphur (S) -- on notified P&K fertilisers, including DAP, MOP, SSP and NPK/NPKS grades.

Rates are announced twice a year.

For this rabi season, the subsidy has been set at `94.21 per kg for nitrogen, `66.11 per kg for phosphorus and `10.42 per kg for Sulphur, while the rate for potash has been left unchanged at `2.38 per kg.

Briefing reporters after the Cabinet meeting, Union information and broadcasting minister Ashwini Vaishnaw said fertiliser prices had risen sharply due to the West Asia crisis and the Russia-Ukraine war. “The government has protected farmers’ interests by providing an adequate fertiliser subsidy for them and, therefore, the Cabinet has approved `62,370 crore as subsidy for P&K fertilisers,” he said.

The Cabinet also approved the extension of the Credit Guarantee Fund for Micro Units for five years, till March 2031. The scheme provides credit guarantee cover to lending institutions through the National Credit Guarantee Trustee Company Ltd (NCGTC) against the risk of defaults.

Since the launch of the PM Mudra scheme, lending institutions have sanctioned more than 60.36 crore loans amounting to `43.34 lakh crore, as of September 2026. “The continuation of the credit guarantee fund for micro units has been extended for five years,” Vaishnaw said.

The Centre also approved the continuation of the Stand-Up India scheme for another five years. The scheme seeks to promote entrepreneurship among women and SC/ST communities by facilitating access to financial assistance.

“It aims to promote entrepreneurship among women and SC/ST communities and provide financial assistance to an additional 2.5 lakh entrepreneurs over the next five years,” Vaishnaw said.

Tags: