Fertiliser Subsidy Issues Related to Equity and Efficiency

and Efficiency Ashok Gulati G D Kalra Despite a 30 per cent hike in fertiliser prices, fertiliser subsidy in the central government budget is expected to touch Rs 60 billion in the year 1991-92. This continues to be a matter of concern to policy-makers trying to correct the fiscal imbalance in the budget. This paper suggests thai farmers, fertiliser industry and consumers offoodgrains all seem to be benefiting from this subsidy in one way or the other, and in varying degrees. The burden of readjustment, therefore, should fall on all the three fronts, almost simultaneously.