Centre Clears Rs 62,370 Crore Subsidy on P&K Fertilisers For Rabi Season
The government also approved a Rs 5,000-crore credit guarantee fund under the PM Mudra scheme, extending the fund for micro units for 5 years
New Delhi: Amid the drastic surge of fertiliser prices due to the West Asia crisis and the Russia-Ukraine war, the Centre on Wednesday gave a big relief to the farmers, clearing a Rs 62,370 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season 2026-27. Besides, the government also approved a Rs 5,000-crore credit guarantee fund under the PM Mudra scheme, extending the fund for micro units for 5 years.
As far as the subsidy on P&K fertilisers, the government also said that it would fix the nutrient based subsidy (NBS) rates for Rabi season 2026-27 (from October 2026 to March 31, 2027) on Phosphatic and Potassic (P&K) fertilisers.
Briefing the reporters after the cabinet meeting, Union information and broadcasting minister Ashwini Vaishnaw said the fertiliser prices have shot up immensely 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 Rs 62,370 crore as subsidy for P&K fertilisers,” the minister said.
As per the government, the subsidy on P&K fertilisers, including DAP and NPKS (nitrogen, phosphorus, potash, sulphur) grades, will be provided based on approved rates for Rabi 2026-27 to ensure smooth availability of these soil nutrients to the farmers at affordable prices. “The Modi government has provided a shield to farmers from geopolitical turmoil,” he said, adding that the DAP (di-ammonium phosphate) rate would remain the same at Rs 1,350 per bag of 50 kg each.
On credit guarantee funds, the Union Cabinet also approved the extension of the Credit Guarantee Fund for Micro Units (CGFMU) for five years to March 2031. The scheme provides credit guarantee coverage to the lending institutions through National Credit Guarantee Trustee Company Limited (NCGTC) against default risk.
As of September 2026, more than 60.36 crore loans amounting to Rs 43.34 lakh crore have been sanctioned by lending institutions since the launch of the PM Mudra scheme. “The continuation of the credit guarantee fund for micro units has been extended for five years,” the minister said.Meanwhile, the Centre also approved the continuation of Stand-Up India scheme for next 5 years to promote entrepreneurship among women, scheduled castes (SCs) and scheduled tribes (STs). “The scheme aims to promote entrepreneurship among women, SC/STand and provide financial assistance to additional 2.5 lakh entrepreneurs in a span of five years,” Vaishnaw said.
