Fertilizers Purchase in India -from Subsidies to Direct Cash Transfers

FERTILIZERS PURCHASE IN INDIA -FROM SUBSIDIES TO DIRECT CASH TRANSFERS

by vdassani | January 3, 2014

Flickr: IITA

Flickr: IITA

This entry is cross-posted from Food Security Portal. If you’d like more information, please visit http://www.foodsecurityportal.org/

Fertilizer use in India has exploded since the government began a subsidization program in the 1970s. National fertilizer consumption rates increased by 50% during the 1990s. But research has shown that the effectiveness of these inputs has actually declined – on average, 8 kilograms of grain were produced per kilogram of fertilizer in the late 1990s, compared to 25 kg of grain per kg of fertilizer in the 1960s. Many farmers have reacted by simply applying even more fertilizer to their land; in addition to greatly increasing the cost of the government’s subsidy program, this overapplication of chemical fertilizers can cause long-term damage to the soil and surrounding water supply, further threatening agricultural productivity. And while some farmers are using far too much fertilizer, other smaller farmers continue to have little or no access to fertilizers at all, thereby underscoring deeper systematic problems with fertilizer subsidies and distribution within the country.

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