Fertilizer Subsidy: A brief profile 

Report Overview:

According to the Economic Survey 2015-16, fertilizer subsidy forms 0.8 % of the GDP. In the Union Budget 2016-17, fertilizer subsidy amounted to almost 27.9 % of the total subsidy amount. It accounts for the second highest subsidy component after payments for food subsidy. The subsidy is provided on both indigenously manufactured and imported fertilizer. India lacks self sufficiency in the production of fertilizers leading to large imports from foreign sources . Within the subsidy regime a gamut of policies exists for different types of fertilizers. The lack of a uniform policy also contributes to an unwieldy and complex fertilizer subsidy regime.