The relative efficiency of the price support of rice compared to the fertilizer subsidy policyboth competing for scarce budgetary resourcesis evaluated in the paper. An analytical framework is developed to obtain measures of the evaluation criteria. The results indicate that the fertilizer subsidy policy is more efficient than the price support policy in increasing production. Sensitivity tests with respect to some important assumptions do not change the basic conclusions. Distributional implications also tend to favour fertilizer subsidy policy. One implication of the results is that, for any reduction in the budgetary burden of subsidy, the government should explore the price support programme before reducing fertilizer subsidy.