<h1>Indian Government Plans Fertilizer Subsidy Reforms to Support Small Farmers and Reduce Market Distortions.</h1> The Economic Survey 2015-16 highlights that the Indian government allocated Rs. 73,000 crore for fertilizer subsidies, primarily for urea, in 2015-16. This subsidy system creates market distortions, particularly affecting small farmers. Proposed reforms include decimalizing urea imports to improve supply flexibility, bringing urea under the Nutrient Based Subsidy program, and implementing direct transfers to reduce black market leakages. The government is considering biometric authentication and capping subsidized urea purchases to better target subsidies. These reforms aim to enhance efficiency, support small farmers, and mitigate the negative impacts of urea overuse on soil and economic growth.