Promoting Biofertilisers in Indian Agriculture

Biofertilisers have multiple beneficial impacts on the soil and can be relatively cheap and convenient for use. The government is seeking to encourage their use in agriculture and also promote private initiative and commercial viability of production. This paper analyses data from industry and finds only limited success till date. There has been no accelerated growth in distribution and there has been inadequate spatial diffusion. Despite the entry of small private units into the industry, there is no clear indication of success. The paper argues that the government has ample grounds to intervene to set up an effective market for biofertilisers, while encouraging private players. But the policy and instruments of intervention need to be designed with care.