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<h1>Fertilizer subsidy policy shift to nutrient-based subsidies changed pricing incentives and industry competitiveness.</h1> The Government replaced administered MRPs with a Nutrient Based Subsidy (NBS) policy for P&K fertilizers from 1 April 2010 to address distortions where MRPs below delivered cost required large subsidies, suppressed industry incentives, and limited productivity; a formal impact study is proposed. Urea prices remain government-fixed with subsidy covering the gap, while fixed nutrient-based subsidies apply to 21 P&K grades and companies set MRPs; the Department reports no pricing anomalies.