Economic Liberalisation and Fertiliser Policies in India

Use of chemical fertilisers has been key to agricultural growth in India since the 1970s. Widespread adoption of chemical fertilisers along with other modern inputs became possible because of specific policies that were introduced in the wake of the Green Revolution. Fertiliser policies following the Green Revolution were designed to meet the dual objective of expanding domestic capacity for fertiliser production and making fertilisers available to farmers at affordable prices. During this period, State policy ensured an increase in the supply of raw material for manufacturing fertilisers. The public sector and cooperatives led the production of fertilisers, and fertiliser prices as well as the distribution of fertilisers across states were regulated by the government. A system of controls and subsidies was designed to provide assured returns to fertiliser manufacturers as well.