Fertiliser Consumption after Decontrol : Myths and Realities

It is already corroborated by studies and macro-level data that fertiliser decontrol which was introduced on August 1992 in two components, namely, Phosphate (P) and Potash (K) has reduced the consumption of fertiliser and sharply widened the NPK ratio more in an unfavourable way at all India level. However, the impact of decontrol has not been focused at state level so far. The present study analyses how the decontrol's impact varies across the states and which are the states affected largely. This study has found that the reduction of P and K fertiliser consumption is above the national average in majority of the agriculturally advanced states. The worst affected zone both in terms of P and K consumption and NPK ratio is north. Sharp reduction in P and K consumption has occurred mostly in state which has above national average in terms of gross irrigated area, groundwater area, canal irrigated area, area under food crops and cropping intensity. At the individual state level, the worst affected states are UP, Punjab and Haryana.