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Fertilizer Subsidies and Indian Agriculture


Affiliations
1 Department of Economics, Baba Ghulam Shah Badshah University, Rajouri, (JandK)-185234, India
2 Department of Economics, Baba Ghulam Shah Badshah University, Rajouri, (JandK)-185234., India
     

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Agriculture around the globe serves as a powerful engine of Economic growth and development. In India, agriculture acts as a central pillar of economy as almost 60% of work force is employed in this sector. To increase the output of agriculture sector, the government intervenes by providing input subsidies. The Government of India is continuously providing subsidies on fertilizers, electricity, irrigation and credit, since early 1970s. The present study is an attempt to estimate the amount of subsidies granted by Government of India from time to time and the trends of total subsidies granted. The author tried to analyze the percentage increase in the amount of subsidies from 1976 to 2017-18 and to compare the agricultural output to the subsidies granted. In an attempt to find out the impact of subsidies on agricultural growth, the author analyzed that the fertilizer subsidies have increased with a rapid rate compared to other subsidies. The results show that the fertilizer subsidies have increased by 84.33% since 1991-92 compared to the agricultural output which increased by just 18.38% during the same period. The study is based upon the secondary data published by fertilizer association of India, agricultural statistics, Government of India, input survey of Government of India and fertilizers statistics (various issues).

Keywords

Subsidies, Agriculture, Fertilizers, Irrigation, Electricity.
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  • Fertilizer Subsidies and Indian Agriculture

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Authors

Mohammed Tahir Raoof Malik
Department of Economics, Baba Ghulam Shah Badshah University, Rajouri, (JandK)-185234, India
Dilip Pazir
Department of Economics, Baba Ghulam Shah Badshah University, Rajouri, (JandK)-185234., India

Abstract


Agriculture around the globe serves as a powerful engine of Economic growth and development. In India, agriculture acts as a central pillar of economy as almost 60% of work force is employed in this sector. To increase the output of agriculture sector, the government intervenes by providing input subsidies. The Government of India is continuously providing subsidies on fertilizers, electricity, irrigation and credit, since early 1970s. The present study is an attempt to estimate the amount of subsidies granted by Government of India from time to time and the trends of total subsidies granted. The author tried to analyze the percentage increase in the amount of subsidies from 1976 to 2017-18 and to compare the agricultural output to the subsidies granted. In an attempt to find out the impact of subsidies on agricultural growth, the author analyzed that the fertilizer subsidies have increased with a rapid rate compared to other subsidies. The results show that the fertilizer subsidies have increased by 84.33% since 1991-92 compared to the agricultural output which increased by just 18.38% during the same period. The study is based upon the secondary data published by fertilizer association of India, agricultural statistics, Government of India, input survey of Government of India and fertilizers statistics (various issues).

Keywords


Subsidies, Agriculture, Fertilizers, Irrigation, Electricity.

References