Although the average per hectare consumption of fertilizer nutrients has increased from less than 1 Kg. in 1951-52 to about 86.1 Kg. in 1997-98, even this level of fertilizer use is low with reference to the objective of accelerating the growth in the agriculture sector, as well as the consumption levels prevailing in other countries, including some of the developing countries in Asia. Moreover, the consumption of chemical fertilizers in the country is unevenly distributed, being much higher in regions with assured irrigation. In view of the limited scope for increasing the land area under cultivation, further increases in agricultural production can be achieved only through better water management, expansion of the area under irrigation, improved farming practices, research and development in the use of scientific inputs and seeds, and last but not the least, more extensive and balanced use of fertilizers through fertilizer education. Hence, the critical importance of the fertilizer sector in the Indian economy, especially in creating a prosperous rural base.