UPSC Prelims Practice Questions — Supporting Balanced Fertilization: Nutrient-Based Subsidy Rates for Rabi 2025-26

Q1. For the Rabi 2025-26 season, the revised Nutrient Based Subsidy (NBS) rates approved by the Cabinet cover how many grades of Phosphatic & Potassic (P&K) fertilizers?

  • A. 12 grades
  • B. 21 grades
  • C. 28 grades
  • D. 35 grades

Q2. Consider the following bodies in relation to the fixing and approval of NBS rates for P&K fertilizers: 1. Department of Fertilizers 2. Ministry of Chemicals and Fertilizers 3. Cabinet Committee on Economic Affairs (CCEA) 4. Ministry of Agriculture and Farmers Welfare Which of the above is/are NOT correctly associated with the fixing/approval of NBS rates?

  1. Department of Fertilizers
  2. Ministry of Chemicals and Fertilizers
  3. Cabinet Committee on Economic Affairs (CCEA)
  4. Ministry of Agriculture and Farmers Welfare
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q3. Which one of the following operationalises the Nutrient Based Subsidy (NBS) scheme and moves the proposal for fixing NBS rates on P&K fertilizers?

  • A. Department of Fertilizers
  • B. Department of Agriculture and Farmers Welfare
  • C. Department of Food and Public Distribution
  • D. Department of Rural Development

Q4. The Nutrient Based Subsidy (NBS) scheme for Phosphatic & Potassic fertilizers was introduced with effect from which one of the following?

  • A. 1 April 2008
  • B. 1 April 2010
  • C. 1 April 2012
  • D. 1 April 2015

Q5. In the context of the NBS scheme, the 'decontrol' of the Phosphatic & Potassic (P&K) fertilizer sector is best described as which one of the following?

  • A. Fertilizer companies fix the Maximum Retail Price while the Government pays a fixed nutrient-content-based subsidy
  • B. The Government fixes both the Maximum Retail Price and the subsidy, and companies merely distribute the fertilizer
  • C. Both the price and the subsidy are left entirely to market forces with no Government payment
  • D. Companies receive an ad-valorem subsidy on the import value with the retail price fixed statutorily by the Government

Q6. With reference to the NBS rates approved for the Rabi 2025-26 season, consider the following statements: 1. The tentative budgetary requirement is about ₹37,952.29 crore. 2. This requirement is about ₹736 crore higher than that for Kharif 2025. 3. The subsidy on DAP is fixed at ₹29,805 per metric tonne. 4. The rates are effective for the period April to September 2025. Which of the above is/are correctly identified?

  1. The tentative budgetary requirement is about ₹37,952.29 crore.
  2. This requirement is about ₹736 crore higher than that for Kharif 2025.
  3. The subsidy on DAP is fixed at ₹29,805 per metric tonne.
  4. The rates are effective for the period April to September 2025.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q7. Among the P&K fertilizers, which one carries the highest per-metric-tonne subsidy fixed for the Rabi 2025-26 season?

  • A. Di-Ammonium Phosphate (DAP)
  • B. Muriate of Potash (MOP)
  • C. Single Super Phosphate (SSP)
  • D. Mono-Ammonium Phosphate (MAP)

Q8. In the context of the enhanced fertilizer subsidy, Di-Ammonium Phosphate (DAP) is best described as which one of the following?

  • A. A phosphatic fertilizer that also supplies nitrogen, covered under NBS
  • B. A purely potassic fertilizer supplying only potash, kept outside NBS
  • C. A nitrogenous fertilizer identical to urea and under statutory price control
  • D. A micronutrient fortifier supplying only sulphur and zinc

Q9. The special packages on DAP, provided over and above the NBS subsidy rates to keep DAP affordable to farmers, are extended by a department functioning under which Union Ministry?

  • A. Ministry of Chemicals and Fertilizers
  • B. Ministry of Agriculture and Farmers Welfare
  • C. Ministry of Consumer Affairs, Food and Public Distribution
  • D. Ministry of Commerce and Industry

Q10. Comparing the Rabi 2025-26 NBS revision with the preceding periods, consider the following statements: 1. The DAP subsidy for Rabi 2025-26 (₹29,805/MT) is higher than the ₹21,911/MT fixed for Rabi 2024-25. 2. The budgetary requirement for Rabi 2025-26 is higher than that for Kharif 2025. 3. Urea was brought under the NBS scheme for the first time in Rabi 2025-26. Which of the statements given above is/are correct?

  1. The DAP subsidy for Rabi 2025-26 (₹29,805/MT) is higher than the ₹21,911/MT fixed for Rabi 2024-25.
  2. The budgetary requirement for Rabi 2025-26 is higher than that for Kharif 2025.
  3. Urea was brought under the NBS scheme for the first time in Rabi 2025-26.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. The NBS rates, revised bi-annually in view of international prices of raw materials such as rock phosphate, ammonia and sulphur, receive their final approval from which one of the following?

  • A. Cabinet Committee on Economic Affairs (CCEA)
  • B. NITI Aayog
  • C. Commission for Agricultural Costs and Prices (CACP)
  • D. Fertilizer Association of India (FAI)