Subsidies on Inorganic Fertiliser

Subsidies on inorganic fertiliser have been common in developing countries, at least in concealed form through pan-territorial pricing and transport subsidies, and in oil-rich countries (Nigeria, the Middle East and North Africa) especially important. They have distorted crop-livestock integration processes through, among other processes:

- discouraging optimal handling and storage of manure
- discouraging the cultivation of leguminous crops providing protein to livestock
- contributing to the breakdown of traditional exchanges of manure and crop residue grazing rights between pastoralists and sedentary farmers.

Policy Options

Phase out subsidies on inorganic fertiliser

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