ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Equity in Fertiliser Subsidy Distribution

This paper examines the issue of inter-crop, inter-regional and inter-class equity in fertiliser subsidy distribution in terms of shares of different farm classes, crops and states in total fertiliser use as well as per hectare fertiliser use on different size categories of farms. The paper shows that paddy and wheat cultivators are the major beneficiaries of fertiliser subsidy. Interstate disparity in fertiliser consumption still remains high, though it has been falling over the years. More significant is the finding that there prevails a fair degree of inter-class equity in distribution of fertiliser subsidy, contrary to the widely prevalent impression. A uniform approach to reduction of all types of subsidies is not justified. Instead a well thought out, properly sequenced, gradualist and regionally differentiated approach to subsidy reduction needs to be adopted.

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