Economic Affairs
Year : 2014, Volume : 59, Issue : 2
First page : ( 163) Last page : ( 173)
Print ISSN : 0424-2513. Online ISSN : 0976-4666.
Article DOI : 10.5958/j.0976-4666.59.2.016

Evolution and Emerging Issues in Fertilizer Policies in India

Praveen K.V.*

Division of Agricultural Economics, Indian Agricultural Research Institute, New Delhi-110012, India

*Corresponding author: praveenkv@iari.res.in

Online published on 29 May, 2014.

Abstract

Over the years the policy makers in India have adopted a wide range of strategies to ensure supply of fertilizers equitably by providing it at an affordable price. The major fertilizer policies implemented, including the retention price scheme, decontrol of prices, nutrient based pricing, nutrient based subsidy etc., could not ensure a steady increase in the crop response to the fertilizers. Hence it is important to trace the evolution of fertilizer policies and suggest some measures to improve them. Some changes in the policy regime like subsidy intervention from the input side, making the fertilizers available in smaller quantity along with other inputs, preferential taxes and tax holidays on the selected fertilizer products and the raw materials, fertilizer mix customised to the requirements of the soil in different regions, targeted distribution of fertilizers etc. can bring about improvements. Policies like that of the proposed Direct Cash Transfer (DCT) of fertilizer subsidies should be carefully studied for the fraught involved in it before being implemented.

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Keywords

Crop response to fertilizers, Fertilizer policy, subsidy, Direct Cash Transfer.

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