Fertilizer Subsidy Scheme: Urea, DAP Rates & Farmer Benefits

Introduction of Fertilizer Subsidy Scheme: A Brief Insight

When fertilizer prices rise in the international market, farmers often struggle to afford essential farm inputs. The Fertilizer Subsidy Scheme of the Government of India helps reduce this burden. The Government pays a part of the fertilizer cost directly to companies, allowing farmers to buy fertilizers at affordable prices.

The Government of India runs this programme as a Central Sector Scheme. It mainly works through two systems: a fixed selling price for urea and the Nutrient Based Subsidy (NBS) for phosphatic and potassic fertilizers such as DAP, MOP, SSP and NPKS grades.

The Department of Fertilizers under the Ministry of Chemicals and Fertilizers implements the scheme. The Nutrient Based Subsidy has been in operation since 1 April 2010, and the Cabinet revises its subsidy rates for each season.

The scheme aims to ensure that farmers get fertilizers on time at affordable prices. It also encourages the balanced use of nitrogen, phosphorus, potash and sulphur to support soil health and improve crop production.

Farmers can buy urea at a fixed price of ₹242 for a 45 kg bag, excluding neem coating charges and applicable taxes. According to the Government, this price has remained unchanged since 1 March 2018.

The Nutrient Based Subsidy covers 28 grades of phosphatic and potassic fertilizers. For Rabi 2025-26, the approved rates were ₹43.02 per kg for nitrogen, ₹47.96 for phosphorus, ₹2.38 for potash and ₹2.87 for sulphur. The Cabinet has also approved the subsidy rates for Kharif 2026, with a budget of about ₹41,534 crore.

The Cabinet has also extended a special package of ₹3,500 per tonne on DAP until further orders to help keep its retail price affordable. The Government releases the subsidy to fertilizer companies based on actual sales recorded through Point of Sale machines at retail shops.

Small, marginal and large farmers can purchase subsidised fertilizers from licensed retailers after verifying their identity. The Government has not announced any income or landholding limit for purchasing fertilizers under the scheme.

Farmers do not need to fill out an application form or register separately. They simply visit a licensed fertilizer shop, show an accepted identity document such as an Aadhaar card, Kisan Credit Card or voter ID, pay the applicable price and collect a bill. Always check the price printed on the bag and report overcharging to your local agriculture office.

For assistance, farmers can contact their Block Agriculture Office, District Agriculture Officer or nearby Krishi Vigyan Kendra. They can also visit the Department of Fertilizers website for official announcements. Since the Government revises NBS rates seasonally, check the latest rates before purchasing fertilizers.

Farmers who want yearly financial assistance can also explore the PM Kisan Samman Nidhi Yojana. Those who want financial protection against crop losses can learn about the PM Fasal Bima Yojana.

Farmers who need loans for seeds, fertilizers and other agricultural expenses can check the Kisan Credit Card Scheme. Those who want to improve irrigation facilities on their farms can explore the PM Krishi Sinchayee Yojana.

Farmers, agricultural workers, rural families and anyone looking for more agriculture, farming and welfare schemes offered by the Central Government can explore our Central Government Popular and Welfare Schemes page to find other available programmes.

Benefits Provided to Eligible Beneficiaries

Fertilizer prices can rise when the cost of raw materials increases in the international market. The Fertilizer Subsidy Scheme helps protect Indian farmers from this burden. The Government pays a part of the fertilizer cost to companies, allowing farmers to buy fertilizers at affordable prices. Here are the major benefits provided under the scheme.

Urea at a Fixed Low Price

• Farmers can buy urea at a fixed price of ₹242 for a 45 kg bag, excluding neem coating charges and applicable taxes.
• The Government has kept this price unchanged since 1 March 2018, despite changes in the cost of manufacturing and importing urea.
• The Government pays the difference between the actual cost of urea at the farm gate and its fixed selling price directly to the manufacturing or importing company.
• Every bag of urea receives a neem coating, which slows down the release of nitrogen in the soil and helps reduce its misuse.

Subsidy on DAP, MOP, SSP and Other Fertilizers

Under the Nutrient Based Subsidy (NBS) Scheme, the Government provides subsidies based on the quantity of nutrients in fertilizers. It covers 28 grades of phosphatic and potassic fertilizers, with subsidy rates revised for different seasons.

The Cabinet approved a budget of about ₹37,952 crore for NBS rates during Rabi 2025-26 and about ₹41,534 crore for Kharif 2026.

What It Means for One Bag

• During Rabi 2025-26, the subsidy on DAP was ₹29,805 per tonne, equivalent to approximately ₹1,490 for a 50 kg bag.
• The subsidy on SSP was ₹7,408 per tonne, while the subsidy on MOP was ₹1,428 per tonne.
• The subsidy on other NPKS fertilizer grades depends on their nutrient composition. Farmers can check the nutrient details printed on each bag.

Extra Help on DAP

• The Cabinet extended a special package of ₹3,500 per tonne for DAP from 1 January 2025 until further orders, in addition to the regular Nutrient Based Subsidy.
• This additional support helps control the retail price of DAP. Reports say that it helped maintain the price at ₹1,350 for a 50 kg bag.
• For a 50 kg bag, the additional package amounts to approximately ₹175.

Extra Subsidy for Boron and Zinc

• The Government provides an additional subsidy of ₹300 per tonne for fertilizers containing boron.
• Fertilizers containing zinc receive an additional subsidy of ₹500 per tonne.
• These nutrients help improve crop growth when the soil lacks sufficient boron or zinc.

Protection From Overcharging

• The Government monitors fertilizer companies’ costs and selling prices. It limits their profit margins to 8% for importers, 10% for manufacturers and 12% for integrated manufacturers.
• Every fertilizer bag must clearly display its maximum retail price (MRP) and applicable subsidy details, including the amount per bag and per kg.
• The Government releases subsidies to companies based on sales recorded through the retailer’s Point of Sale (PoS) machine. This helps track actual fertilizer sales.

How the Scheme Helps You

• You can buy essential fertilizers at Government-supported prices without bearing the full impact of rising international prices.
• Affordable fertilizer prices help you plan your crop cultivation expenses more confidently.
• Small, marginal and large farmers can access subsidised fertilizers at licensed shops by completing identity verification.
• You can select fertilizers according to their nutrient content and meet your soil’s requirements for nitrogen, phosphorus, potash and sulphur.

Good to Know

• The Government transfers the subsidy to fertilizer companies, not directly to farmers’ bank accounts. Farmers receive the benefit through lower fertilizer prices at the shop.
• Nutrient Based Subsidy rates apply to specific seasons. Check the latest Government announcement before purchasing fertilizers.
• The Kharif 2026 figures mentioned above are based on available reports. Check the official Cabinet announcement for the exact approved rates.
• Always use fertilizers in the recommended quantity according to your soil’s needs. Applying excess fertilizer does not necessarily increase crop production.

Eligibility Conditions Required to be Fulfilled

The Fertilizer Subsidy Scheme allows farmers across India to buy fertilizers at Government-supported prices. It has no announced income or landholding limit. However, farmers must follow the prescribed purchase process and verify their identity at a licensed fertilizer shop. Check the following conditions before buying subsidised fertilizers.

Who Can Buy at the Subsidised Price

• Any farmer can purchase subsidised fertilizers, whether they are a small, marginal or large farmer.
• The Government follows a no-denial policy, which means a licensed retailer should not refuse a sale to a buyer who successfully verifies their identity.
• The buyer must provide valid identity proof at the shop, such as an Aadhaar card, Kisan Credit Card, voter ID card or another accepted identity document.
• The buyer must be present at the shop because the Point of Sale (PoS) machine verifies the buyer’s identity.

Which Fertilizers Are Covered

• Urea: The Government fixes its price at ₹242 for a 45 kg bag, excluding neem coating charges and applicable taxes. This price has remained unchanged since 1 March 2018.
• The Government covers 28 grades of phosphatic and potassic (P&K) fertilizers under the Nutrient Based Subsidy (NBS) Scheme, including DAP, MOP, SSP and NPKS fertilizers.
• The subsidy on these fertilizers depends on their nutrient content, including nitrogen, phosphorus, potash and sulphur.
• Fertilizer companies decide the retail prices of P&K fertilizers, while the Department of Fertilizers monitors these prices.

Where You Buy

• Purchase fertilizers from a licensed fertilizer retailer equipped with a Point of Sale (PoS) machine.
• The retailer must record every subsidised fertilizer sale through the PoS machine, which captures the buyer’s details and the quantity purchased.
• The Government releases the subsidy to fertilizer companies based on recorded sales. Therefore, make sure the retailer completes your purchase through the PoS machine.

Who Is Not Eligible

• The Government has not announced any income or landholding limit that disqualifies a farmer from purchasing subsidised fertilizers.
• A buyer who cannot complete identity verification at the PoS machine cannot complete the recorded subsidised sale.
• Subsidised urea is meant for agricultural use, not industrial purposes. Its neem coating helps discourage its use for non-agricultural purposes.
• Purchases made outside the authorised retail system do not qualify for the recorded fertilizer subsidy.

Check Before You Buy

• Carry your Aadhaar Card, Kisan Credit Card or Voter ID Card, along with your mobile phone.
• Check the price printed on the fertilizer bag and the purchase bill. The bag should clearly display its maximum retail price and applicable subsidy details.
• Reports state that DAP was sold at ₹1,350 for a 50 kg bag during the Kharif season of 2026. However, its retail price may change from one season to another.
• The Government announces subsidy rates for each season. Check the latest official announcement before planning your fertilizer purchase.
• If a retailer charges more than the permitted price, report the matter to your local agriculture office or District Fertilizer Officer.

Documents Required to be Attached

Under the Fertilizer Subsidy Scheme, farmers can buy fertilizers at Government-fixed prices without applying separately or waiting for money in their bank accounts. The Government pays the subsidy directly to fertilizer companies. Farmers only need valid identity proof, such as an Aadhaar Card, to purchase subsidised fertilizers through a licensed shop using its Point of Sale (PoS) machine.

• Aadhaar Card of the buyer, which serves as the most commonly used identity proof. Every sale of subsidised fertilizer is recorded through a Point of Sale (PoS) machine, which verifies the buyer’s identity using Aadhaar.
• Kisan Credit Card (KCC), if available, which the Government also recognises as an identity document for fertilizer purchases.
• Voter ID Card or another recognised identity document, which can also help verify the buyer’s identity.
• Mobile number linked to your Aadhaar Card, which helps complete identity verification through the PoS machine.
• Your personal presence at the fertilizer shop, as the PoS machine verifies the identity of the actual buyer. Another person cannot use your identity to purchase fertilizer on your behalf.
• Cash or another payment method accepted by the shop, as you need to pay the fixed price of the fertilizer at the counter.

What You Get in Return

• A printed bill or purchase receipt from the fertilizer shop for every transaction.
• Clear details of the maximum retail price (MRP) and applicable subsidy on each fertilizer bag, including the amount per bag and per kg, as required by the Government.
• A digital record of your fertilizer purchase, which the Government maintains to track subsidised sales and ensure that the subsidy reaches the intended beneficiaries.

What You Do Not Need

• You do not need to submit a separate application form to purchase subsidised fertilizers.
• You do not need to wait for the subsidy to reach your bank account because the Government pays the subsidy directly to fertilizer companies.
• You do not need to submit land records as a standard requirement for purchasing fertilizer under the scheme. However, some shops or State Governments may ask for additional details, so contact your local agriculture office if you are unsure.

How Beneficiaries Can Apply to Avail the Benefit of the Scheme

You do not need to apply separately for the Fertilizer Subsidy Scheme. There is no application form or registration process for farmers. The Government pays the subsidy directly to fertilizer companies, so you get the benefit through the lower price at the shop. You only need to visit a licensed fertilizer retailer, verify your identity and collect your purchase bill. Follow these simple steps to buy subsidised fertilizer.

Before You Go to the Shop

Step 1: First, find out which fertilizer your crop needs. You can check your Soil Health Card or take advice from your agriculture officer or nearby Krishi Vigyan Kendra (KVK). This will help you avoid buying unnecessary fertilizer.

Step 2: Find a licensed fertilizer shop in your area. Make sure the shop has a Point of Sale (PoS) machine to record subsidised fertilizer sales.

Step 3: Carry a valid identity document, such as your Aadhaar Card, Kisan Credit Card or Voter ID Card. The Ministry of Chemicals and Fertilizers’ explanation of the subsidy system also mentions these identity documents.

Step 4: Keep your mobile phone with you. If you use Aadhaar for verification, make sure you have access to the mobile number linked to your Aadhaar card.

Step 5: Check the fertilizer price before visiting the shop. For example, urea costs ₹242 for a 45 kg bag, excluding neem coating charges and applicable taxes. The Government has kept this price unchanged since March 2018.

At the Shop

Step 1: Tell the shopkeeper which fertilizer you need and how many bags you want to purchase.

Step 2: Show your identity document to the shopkeeper so that the PoS machine can verify your identity.

Step 3: Complete the verification yourself. You must be present at the shop because the machine records the details of the actual buyer.

Step 4: Wait while the shopkeeper enters your purchase details into the PoS machine. The machine records the fertilizer type and the number of bags you purchase.

Step 5: Before making payment, ask the shopkeeper to show you the price printed on the fertilizer bag.

Check the Bag and the Bill

Step 1: Check the fertilizer bag carefully. It should clearly display the maximum retail price (MRP) and the applicable subsidy details, including the amount per bag and per kg.

Step 2: Compare the printed price with the amount the shopkeeper asks you to pay. Do not pay more than the permitted price.

Step 3: Pay the amount at the counter using the payment method accepted by the shop.

Step 4: Collect a printed bill or purchase receipt. Check that it mentions the fertilizer name, number of bags and total amount paid.

Step 5: Keep the bill safely. It will serve as proof of purchase if you need to report overcharging or any other problem later.

If You Want to Know the Subsidy Rates

Step 1: Read the Press Information Bureau’s explanation of the Nutrient Based Subsidy Scheme to understand how the Government calculates fertilizer subsidies according to their nutrient content.

Step 2: Check the Cabinet’s approval of Nutrient Based Subsidy rates for Kharif 2026 to read the official decision for that season.

Step 3: Visit the official Department of Fertilizers website for the latest subsidy announcements. The Government revises Nutrient Based Subsidy rates for different seasons.

If a Shop Refuses or Charges More

Step 1: Remember that the Government follows a no-denial rule. A licensed fertilizer retailer should not refuse to sell subsidised fertilizer to a buyer who successfully verifies their identity.

Step 2: If the shopkeeper asks for more than the printed price or refuses to sell fertilizer, politely ask for the reason and request a bill.

Step 3: Do not pay an extra amount. Note down the shop’s name, location, date and the price demanded by the shopkeeper.

Step 4: Report the matter to your Block Agriculture Officer or District Agriculture Officer. Submit a written complaint along with the bill or other details, if available.

Step 5: If the problem continues, ask your Gram Panchayat or local farmers’ group to help you raise the complaint with the concerned authorities.

Use the Fertilizer in the Right Amount

Step 1: Use fertilizer according to your soil’s needs and the requirements of your crop. Applying extra fertilizer can increase your expenses without improving crop production.

Step 2: Use a balanced combination of nitrogen, phosphorus, potash and sulphur instead of depending only on urea.

Step 3: If you are unsure about the correct quantity, ask your agriculture officer for advice before applying fertilizer to your field.

If You Need Help

Step 1: Contact your Block Agriculture Office or nearby Krishi Vigyan Kendra (KVK) first if you need help with fertilizer purchases or subsidy-related information.

Step 2: If the block-level office cannot resolve your issue, contact your District Agriculture Officer.

Step 3: Visit the official Department of Fertilizers website or the Press Information Bureau website to read the latest Government announcements about fertilizer subsidies.

Important: Never pay more than the permitted price or purchase subsidised fertilizer from an unauthorised seller. Farmers do not need to submit a separate application, visit an office or pay any registration fee to receive the benefit. Always check the latest fertilizer prices and subsidy rates before making a purchase.

Which Fertilizer Gives Which Nutrient: A Guide for Farmers

Different fertilizers provide different nutrients to crops. Understanding what each nutrient does and which fertilizer contains it can help you choose the right product. Check your soil’s needs and take advice from your agriculture officer before buying fertilizer.

Fertilizer bags carry nutrient numbers such as 18-46-0-0 for DAP and 0-0-60-0 for MOP. These numbers show the percentage of nitrogen, phosphorus, potash and sulphur, respectively. Check the nutrient composition printed on the bag before buying so that you choose a fertilizer that matches your crop and soil requirements.

Important Links Available of the Scheme

• Department of Fertilizers, Government of India
• Department of Fertilizers Official Contact Details
• Urea Price of ₹242 per 45 kg Bag and Direct Benefit Transfer in Fertilizer Subsidy
• Fertilizer Subsidy Through PoS Machines: 100% Subsidy Payment to Companies on Actual Sales
• Nutrient Based Subsidy Rates for Rabi 2025-26
• Cabinet Approval of Nutrient Based Subsidy Rates for Kharif 2026

Contact Details in Case of Help Needed

• Department: Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India, Shastri Bhawan, New Delhi – 110001
• Phone: 011-23382552
• Block Agriculture Office: The agriculture office of your block, for advice on the right fertilizer and for a complaint against a shop
• District Agriculture Officer: The district agriculture officer, who looks after the licensed fertilizer shops of your district
• Krishi Vigyan Kendra: The Krishi Vigyan Kendra of your district, for soil and crop advice
• Your Fertilizer Shop: The licensed retailer, who gives the bill and shows the machine

Frequently Asked Questions (FAQs)

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.