Subsidies are not an economic issue entirely. It can also be studied on social aspect. Particularly, it is an economic issue for developed countries and it is a social issue too for underdeveloped countries Subsidies are an economic issue for developed countries and it is a social issue too for underdeveloped countries. Agricultural production is influenced majorly by amount of fertilizer, electricity used and the total cropped area. The total cropped area is itself an indicator for utilization of fertilizer; electricity etc. if total cropped area increases agricultural inputs will also increase. Agriculture sustainability is inevitable for eradication of poverty and economic development in under developed countries. For agricultural sustainability subsidies are inevitable as there is positive correlation between subsidies and agricultural productivity and production. Keywords: Subsidies, economic issues, developed countries, social issues, underdeveloped countries, agricultural inputs, Agriculture sustainability, eradication of poverty etc.