This work is on the effects of fertilizer subsidy on output of rice in Imo State from 1990 to 2009. The study used secondary data on subsidy rate, output of rice, and area cultivated to rice. Data were collected from National Bureau of Statistics, Imo ADP and Federal Fertilizer Department. Trend and regression analysis were used to analyze these data. Time series data collected showed that subsidy rate showed a negative relationship with time; there are positive changes in the output of rice over time and subsidy resulted in increase in yield of rice. Result of the regression analysis on subsidy rate and rice output showed no significance at 1% level. Result of the regression on rice yield and subsidy rate is significant at 1% level. A subsidy rate of 25% gave a higher output of rice. It is recommended that fertilizer subsidy policy be maintained, subsidized fertilizer be made available through increased supply and efficient distribution, fertilizer subsidy be maintained at 25% and that subsidized fertilizer should be accessible to rice farmers.
Indian Member 40.00
Others Member 3.00