Rock, paper or scissors: The Trilemma of fertilizer policy in India

Abstract

India needed to restructure its fertilizer subsidies to address some of the shortcomings. First, the choice had to be made between a subsidy-based policy tool and direct income support to farmers. Second, the government had to determine a way to ensure balanced micro and macronutrient levels in the soil while promoting environmentally sustainable agricultural practices. Third, the government had to put in place a mechanism for administering the policy tool to control for leakages in the delivery system. Finally, the government had to establish a fertiliser policy that could complement other governmental programmes to contribute towards an agricultural sector that was selfsufficient and sustainable. This case study discusses this trilemma.