The Impact of Fertilizer Subsidy on Indian Agriculture, 1970-1990

Achievement of a high and sustained rate of growth of agricultural production is a primary objective of Indian economic development. This is expected to meet the requirement of food security increased agricultural exports as well as containment of inflationary pressures in the economy through adequate supply of agricultural produce and consequent stable agricultural prices. Towards this end the Indian Government has been following a policy of input price subsidisation and output price guarantee (procurement prices) as a package of incentives to the farmers in the country to augment agricultural production.