IAS Gyan

Daily News Analysis


19th May, 2023 Agriculture

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  • The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi, has approved the proposal of the Department of Fertilizers for revision in Nutrient Based Subsidy (NBS) rates for various nutrients i.e. Nitrogen (N), Phosphorus (P),Potash (K) and Sulphur (S) for Rabi Season 2022-23.

About Scheme

Commencement and Ministry

  • It is being implemented from April 2010 by the Department of Fertilizers, Ministry of Chemicals & Fertilizers


  • Under the Nutrient Based Subsidy (NBS) scheme fertilizers based on the nutrients N, P, K & S are provided to the farmers at the subsidized rates.
  • Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilisers depending on their nutrient content.
  • Also, Fertilizers that are fortified with micronutrients such as molybdenum (Mo) and zinc are given additional subsidies

Aim of the Scheme

  • NBS policy aims to increase the consumption of P&K fertilizers to achieve the proper balance of NPK fertilization i.e., (N:P: K= 4:2:1).


  • The objectives of continuation of NBS Scheme are to promote balanced use of fertilisers, to reduce subsidy burden on the government, to improve availability of fertilisers to farmers and to encourage competition among fertiliser companies


  • The Government announces the subsidy on P&K fertilizers annually

Determination of subsidy

  • It is determined on a per kg basis and also take care of international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.


  • The Scheme would improve soil health and results in the higher yield from the crops and enhanced income to the farmers.
  • Rational use of fertilizers, would also ease off the burden of fertilizer subsidy.


Q. What is the aim and objective of Nutrient Based Subsidy (NBS) Scheme? Discuss the provisions of NBS Scheme.