Cabinet Clears Pay Panel, ₹38,000 cr Fertiliser Subsidy
From Babus to Farmers, Cabinet Covers Ground
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved two major policy decisions — the Terms of Reference of the Eighth Central Pay Commission and the Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic fertilisers for the Rabi 2025–26 season. The decisions are expected to influence both administrative and agrarian sectors in the months ahead.
According to the Cabinet Secretariat, the Eighth Central Pay Commission will be a temporary body comprising one Chairperson, one Part-Time Member, and one Member-Secretary. It will make its recommendations within 18 months of its constitution and may issue interim reports as required. The Commission’s mandate includes reviewing the pay structure, retirement benefits, and service conditions of Central Government employees, while keeping in view the economic conditions of the country, fiscal prudence, and the need to maintain resources for welfare and development expenditure. It will also assess the likely financial impact of its recommendations on State Governments, which usually adopt such revisions with modifications.
The Central Pay Commissions are periodically constituted at roughly ten-year intervals to review salaries and benefits across government services. As per the established cycle, recommendations of the Eighth Central Pay Commission are expected to take effect from January 1, 2026.
In another decision, the Cabinet approved the proposal of the Department of Fertilisers to fix the Nutrient Based Subsidy (NBS) rates for the Rabi 2025–26 season, covering the period from October 1, 2025, to March 31, 2026. The tentative budgetary requirement for this period is approximately ₹37,952 crore, an increase of about ₹736 crore over the Kharif 2025 season. The subsidy on Phosphatic and Potassic fertilisers, including Di-Ammonium Phosphate (DAP) and NPKS (Nitrogen, Phosphorus, Potash, Sulphur) grades, will be provided based on the approved rates to ensure farmers have continued access to these fertilisers at affordable prices.
Officials said the decision is intended to rationalise fertiliser subsidies in line with fluctuations in global input prices and to maintain steady domestic availability. The Government has been implementing the Nutrient-Based Subsidy scheme since April 1, 2010, covering 28 grades of Phosphatic and Potassic fertilisers, including DAP. The subsidies are provided directly to manufacturers and importers, who sell fertilisers to farmers at subsidised prices.
Following the Cabinet’s approval, Union Minister for Agriculture, Farmers’ Welfare, and Rural Development Shivraj Singh Chouhan thanked Prime Minister Narendra Modi on behalf of farmers for clearing the ₹38,000 crore fertiliser subsidy. During a review meeting earlier in the day, Chouhan assessed the progress of the agriculture sector and reported that the Kharif 2025 sowing had been highly satisfactory, supported by favourable weather and sufficient water availability.
According to the data presented at the meeting, the total sown area for paddy reached 441.58 lakh hectares, higher than last year’s coverage. Oilseeds occupied 190.13 lakh hectares, with soybean and groundnut being the leading crops. Pulses covered 120.41 lakh hectares, marking an important stride toward nutritional security, while sugarcane cultivation stood at 59.07 lakh hectares.
The Agriculture Ministry said India’s reservoirs are showing healthy storage levels, with the total live storage in 161 major reservoirs recorded at 165.58 billion cubic metres — 104 per cent of last year’s level and nearly 116 per cent of the ten-year average. Agriculture Commissioner Dr P.K. Singh, in his presentation, said these conditions are expected to boost irrigation and support higher productivity in both Kharif and Rabi crops.
Harvesting has commenced across several regions, covering around 27 per cent of the total Kharif area. Early Rabi sowing has begun, and the condition of major vegetables such as onion, potato, and tomato is reported to be satisfactory. The Ministry also stated that the current stock of rice and wheat remains above buffer norms, ensuring domestic food security.
Union Minister Chouhan said the agriculture sector is achieving record milestones driven by timely monsoon rains, improved reservoir levels, digital innovations, and effective planning. He said the Central Government, in coordination with the States, would continue to support higher productivity of pulses and oilseeds in the forthcoming Rabi season to strengthen farm incomes and national food security.
The two Cabinet approvals, while addressing distinct domains — administrative pay structures and agricultural inputs — are seen as part of the government’s regular fiscal and policy review cycle. Both decisions are expected to influence public expenditure, employment costs, and agricultural affordability in the coming financial year.
– global bihari bureau
