Fertiliser Use, Nutrient Imbalances and Subsidies

Fertiliser use in India has seen higher growth rates than any other major agricultural input in the last four decades. There has recently been a serious slowdown in the growth of fertiliser use, primarily caused by supply-side constraints. The composition of fertiliser use has also resulted in serious imbalances in the use of major plant nutrients, which could cumulatively have a detrimental effect on soil health and crop productivity. The main cause of the imbalance is found in the price distortions resulting from the structure of fertiliser subsidies. The trend in the prices of agricultural products offers scope for reducing and rationalising fertiliser subsidies to boost fertiliser production and reduce nutritional imbalances.