A STUDY OF FERTILIZER POLICY IN INDIA

The agriculture sector recorded satisfactory growth due to improved technology, irrigation, inputs and pricingpolicies. Livestock, poultry, fisheries and horticulture are surging ahead in production growth in recent years and willhave greater demand in the future. Industrial and service sectors have expanded faster than agriculture sectorresulting in declining share of agriculture in national accounts. Despite the structural change, agriculture still remains akey sector, providing both employment and livelihood opportunities to more than 70 percent of the country's populationwho live in rural areas. The contribution of small farmers to the national and household food security has been steadilyincreasing. The water availability for agricultural uses has reached a critical level and deserves urgent attention of allconcerned.The debate on fertilizer subsidy, as well as all other agricultural subsidies in India, should be examined against thebackdrop of India’s overall economic situation, the prominence farmers and the agricultural sector in India’s politicaleconomy, and recent trends in the Indian agricultural economy. This paper presents socioeconomic data on the Indianeconomy, particularly its farm sector, and discusses issues related to fertilizer production and use. It also provides anoverview of the growth rate, holding size, and indebtedness of the farm sector in India.