The global economy has faced two serious but unconnected crises in quick succession during the past four years. The years 2007 and 2008 witnessed an unprecedented rise in food prices which forced the global community to pay more attention to the agricultural sector.
This paper examines trend in fertiliser use at national and state level and estimates imbalances in use of plant nutrients in different regions. The paper estimates regional disparities in fertiliser use and in benefits of fertiliser subsidy from different angles. Trend in fertiliser subsidy is presented in nominal and real terms and distortions caused by the subsidies are discussed at length.
