- NBS is for DAP and MOP fertilizers, in effect since 2010.
- Producers and importers receive subsidy based on nutrient amount (N, P, K, S).
- Per kg subsidies are fixed by the government annually.
- Market prices are deregulated, but adjusted with fixed nutrient subsidy.
- Role in Rationalizing Use:
- Aims to encourage balanced use of fertilizers (N, P, K).
- By fixing subsidy per nutrient, it allows market forces to influence prices.
- This can lead to more efficient use of resources.
- However, the text notes that urea prices are still regulated, which can distort the N:P:K ratio.