Fertilizer subsidy in India- status and future
2009
Roy, Tuhin Narayan | Ray, Jhilam
Fertilizer subsidy incurs huge quantity of govt. exchequers and become a graet concern for policy makers in the event of WTO agreement wherein India faces a cntinuous pressure from the international body to reduce this subsidy. Agriculture is the backbone of Indian economy. Fertilizer is a very important input for increasing production and productivity. Indian resource poor farmers can not afford to high cost of fertilizer. They need easy acess to fertilizer at cheaper rate to continue agriculture in a sustainable manner. So, india's social need and WTO's directions come face to face in the event of globalization of trade. Empirical evidence show that subsidy increase consumption of fertilizer leading to increase of production and productivity of food gain. Level of fertilizer application has a direct linear relationship with food production which plays the role of maintain food security. Easy acess to fertilizer is possible only when it supplied with macro economic policy for subsidy. This will help increase in total agricultural production and productivity and keep the indian farmers competitive in the international level. Beside efforts are needed for expansion of fertilizer consumption and its judicious application. Fertilizer industry in India needs much attention. Therefore, being a member of WTO, India may find out alternative venues within the WTO's directions so that policy of providing fertilizer subsidy can continue to ensure consistent agricultural production. This effort will help technical improvement in agriculture and also ensure a long term process towards societal up-liftment of million of poor rural masses of the country.
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