1. Role of Fertilizer Policy in
Transforming
Agriculture in Asia
B. Bumb, BLB Associates Bingxin Yu, IFPRI
Agricultural Transformation in Asia
Policy Options for Food and Nutrition Security
September 25 – 27, 2013 | Siem Reap Province, Kingdom of Cambodia

2. Miracle in Asia160
140
120
100
80
60
40
20
0
0 20 40 60 80 100 120 140 160 180 200 220 240
Source: Prepared by IFDC from FAO data
131 181 203 250
1970 1980 1990 2000 2010
Cereal Production
(Area x Yield)
100
Yield
Area

3. Asia: Total NPK Production and
Consumption, 1970-2011

4. 0
200400600800
0 1 2 3 4
Farm Size (Ha)
Smallholder use more fertilizer per
hectare of land
Bangladesh
Nepal
Cambodia
Vietnam
Tajikistan
MediumSmall Large

5. Smallholders have higher rice yield
Yield (ton/ha)
Farm Size 0-0.5 ha 0.5-1 ha 1-2 ha >2 ha
Bangladesh
4.35 4.23 3.98 3.13
Cambodia
3.20 2.46 2.22 2.30
Nepal
3.05 2.44 2.15 1.68
Vietnam
4.86 4.75 4.67 5.39

6. • Challenges
• Food security
• environmental management
• Innovations
• Mindset/Perceptions: Private sector’s role
• Improvements in the supply chain
• Supporting small farmers without distorting the
market
• Improving input use efficiency- getting more from
less
Challenges and Innovations

7. Importers
or
Producers
Wholesale &
distribution
Retail Network &
Outlets
Farmers
Policy Environment and Market Structure
Policy Market Structure Outcome
Tariffs and producer
Subsidies
Uncertainty in the market;
reduced supply, competition
and rent seeking
Regulatory, institutional
environment , and capacities
Finance costs for operating
business and marketing along
the domestic supply chain.
State control & other
interventions, regulatory,
Market development
Timely access to quality
fertilizers, prices
Price subsidies, R&D and
extension, coordination
Fertilizer cost to farmers;
efficiency of fertilizer
Utilization

8. Key Policy Issues
• The Mindset: Perceptions about the role of the
private sector; Role of public and private Sectors;
• Market Interventions: affecting supply chain
• Domestic Support: Are subsidies cost effective?
Non-market distorting options for supporting
small farmers
• Barriers to trade: tariff and non-tariff restrictions
• Regional Interdependence: Policy impacts
• Technologies: Needed to improve nutrient use
efficiency- Getting more from less

9. Thank you very much
for your attention