UPSC Prelims Practice Questions — Nutrient-Based Subsidy Rates for Rabi 2026-27

Q1. With reference to the design of the Nutrient Based Subsidy (NBS) scheme for P&K fertilisers in India, consider the following statements: Which of the statements given above is/are correct?

  1. Two fertiliser grades sold in bags of identical weight can attract different subsidy amounts per bag.
  2. The sulphur content of a grade is ignored while computing its subsidy, as sulphur is only a secondary nutrient.
  3. The per-kg nutrient rates are fixed once when the scheme is notified and remain unchanged across years.
  • A. 1 only
  • B. 2 and 3 only
  • C. 1 and 2 only
  • D. 1, 2 and 3

Q2. With reference to the pricing of chemical fertilisers in India, consider the following statements: Which of the statements given above is/are correct?

  1. The maximum retail price of urea is statutorily fixed by the Government.
  2. Under NBS, the retail prices of P&K fertilisers are set by manufacturers and importers, subject to Government oversight of their reasonableness.
  3. Under NBS, the Government reimburses each P&K manufacturer the gap between its actual cost and a Government-notified retail price.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 only
  • D. 1 and 2 only

Q3. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Fertiliser use in India has been skewed towards nitrogen relative to phosphorus and potassium, which works against balanced fertilisation.
  2. The retail price of urea is fixed by the Government at a low level, while P&K fertiliser prices are set by companies, making nitrogen relatively cheaper for farmers.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q4. Consider the following assertion: Giving sulphur a separate per-kg subsidy rate and promoting Single Superphosphate and Ammonium Sulphate are consistent with the goal of balanced fertilisation. Which of the following statements support/supports the above assertion?

  1. Single Superphosphate supplies sulphur and calcium in addition to phosphorus.
  2. Ammonium Sulphate supplies sulphur in addition to nitrogen.
  3. Sulphur is a primary nutrient that crops need in larger quantities than nitrogen.
  4. Balanced fertilisation means supplying nutrients, including secondary nutrients, in proportions suited to the soil and crop.
  • A. 2 and 3 only
  • B. 1, 2 and 4 only
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q5. Which one of the following fertilisers supplies phosphorus together with substantial amounts of both sulphur and calcium?

  • A. Monoammonium Phosphate
  • B. Triple Superphosphate
  • C. Single Superphosphate
  • D. Diammonium Phosphate

Q6. India's fertiliser subsidy is one of its largest input-support measures. With reference to how such support is treated under the WTO Agreement on Agriculture, consider the following statements: Which of the statements given above is/are correct?

  1. Input subsidies generally available to low-income or resource-poor farmers in a developing country are exempt from reduction commitments.
  2. The input-subsidy flexibility under Article 6.2 is available to all WTO members, developed and developing alike.
  3. Trade-distorting domestic support below the de minimis level need not be counted in a member's Aggregate Measurement of Support.
  • A. 1, 2 and 3
  • B. 1 and 3 only
  • C. 1 only
  • D. 2 and 3 only

Q7. Consider the following facts: India meets about 90% of its rock phosphate requirement through imports. Superphosphate is produced by treating phosphate rock with sulphuric acid. For Rabi 2026-27, the Government announced support only for domestic manufacturers of sulphur and sulphuric acid. Which of the following inferences can be drawn from the above?

  1. The support will make India self-sufficient in phosphatic fertilisers.
  2. The support can reduce import exposure for one of the inputs used in making superphosphate.
  3. The cost of phosphatic fertilisers in India will remain exposed to global rock phosphate prices.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2 and 3 only
  • D. 3 only

Q8. A company reformulates one of its NBS-covered P&K grades to add sulphur, keeping the nitrogen, phosphorus and potassium content per tonne unchanged. What follows for the subsidy per tonne of that grade?

  • A. It rises, since the added sulphur attracts its own per-kg subsidy rate under NBS
  • B. It stays unchanged, since only nitrogen, phosphorus and potassium are subsidised
  • C. It stays unchanged, since the subsidy is a fixed amount per bag of each product
  • D. It falls, since the primary-nutrient share in each bag is diluted by the sulphur