Link Fertiliser Subsidies to Area & Crop Productivity

ICRIER recommends tying fertilizer subsidies to farmland and crop output to reduce urea waste.

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Oct 23, 2026

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Link Fertiliser Subsidies to Area & Crop Productivity

ICRIER recommends tying fertilizer subsidies to farmland and crop output to reduce urea waste.

In brief

ICRIER recommends tying fertilizer subsidies to farmland and crop output to reduce urea waste. ICRIER urges linking India's fertilizer subsidies to cultivated area and crop productivity to curb excessive urea use and improve soil health. Originally reported by The Economic Times.

ICRIER Policy Briefs

ICRIER recommends linking fertilizer subsidies to cultivated area and crop productivity rather than the type of fertilizer purchased.

Urea Subsidy Issues

Urea's controlled price encourages excessive nitrogen application and underuse of phosphorus and potassium.

Digital Records Needed

Integrating farmer identity, land records, crop details, soil information and fertilizer purchases through platforms like AgriStack improves oversight and reduces diversion.

Soil Health Focus

Potential savings from improved subsidy targeting could be redirected to soil health, water conservation, efficient irrigation and crop diversification.

The bottom line

ICRIER urges linking India's fertilizer subsidies to cultivated area and crop productivity to curb excessive urea use and improve soil health.

Read the original on The Economic Times

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