Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

[pib] Nutrient Based Subsidy (NBS) for fertilizersPIB

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Nutrient based subsidies for fertilizers

Mains level : various initiatives for reducing input costs for farmers


  • The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2019-20.

Nutrient Based Subsidy (NBS) Scheme

  • The NBS Scheme for fertilizer was initiated in the year 2010 and is being implemented by the Department of Fertilizers.
  • Government is making available fertilizers, Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
  • Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers, except for Urea based on the nutrient content present in them.
  • It is largely for secondary nutrients like N, P, S and K and micronutrients which are very important for crop growth and development.
  • In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.

What NBS provides?

  • The scheme allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potash fertilizers at reasonable levels.
  • The MRP will be decided considering the domestic and international prices of P&K fertilizers, inventory level in the country and the exchange rates.
  • The NBS ensures that adequate quantity of P&K is made available to the farmers at a statutory controlled price.
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