Tag: fertilizer subsidy in India

The government has been considering a policy shift to transfer the fertilizer subsidy amount to the bank accounts of farmers rather than fertilizer companies. In our pan-India study with farmers we found that only one-third of the farmers knew that they purchase fertilizers at a subsidized rate. With such low awareness levels, this policy shift may evoke shock and displeasure since this would require farmers to first purchase fertilizers at the market price.

This publication discusses the initiatives of the Government of India to increase transparency in the fertilizer distribution system. It also highlights some challenges that persist in the implementation of direct cash transfers in fertilizer and a three-step approach to resolve these challenges.