The revised NBS rates notified for the
kharif season of FY2027 remain
inadequate, considering the raw
material price inflation.
ICRA expects the profitability to be
impacted in the near-to-medium term
unless the industry increases retail
prices sharply and/or the subsidy rates
are revised by the GoI.
Meanwhile, the subsidy requirement
for FY2027 is likely to be materially
higher than the current budgetary
allocation. However, given the GoI’s
focus on ensuring fertiliser availability,
additional allocations are expected
during the year.
Exhibit: Trend in NBS rates
