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Price-support versus fertilizer subsidy



Price-support versus fertilizer subsidy



Economic and Political Weekly 20(13): A17-A22



The relative efficiency and equity of price support compared with fertilizer subsidies is evaluated by applying an analytical framework to India's rice and wheat economy. The results demonstrate that fertilizer subsidy policy is more beneficial than price support, and it is recommended that fertilizer prices should be reduced by about 27% to achieve self sufficiency.

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