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.

Agriculture in India is subject to variety of risks arising from rainfall aberrations, temperature fluctuations, hailstorms, cyclones, floods and climate change. These risks are exacerbated by price fluctuation, weak rural infrastructure, imperfect markets and lack of financial services including limited span and design of risk mitigation instruments such as credit and insurance.