As in the U.S., agriculture subsidies in India largely end up helping large corporations, not farmers. In this case, the fertilizer urea is being overused by Indian farmers and depleting the soil. Yet taking away the subsidy is politically untenable. What to do? Need to shift incentives to better, more sustainable practices for farmers, but of course, then the fertilizer companies are up in arms...
http://online.wsj.com/article/SB10001424052748703615904575052921612723844.html