In many countries, achieving food security is a primary concern in agriculture.Sustainable Intensification of agriculture production and higher fertilizer prices including prevention of inputs material in balance quantity are the key issues in agriculture crop producing countries, mainly in south Asian countries. Agriculture sector play an important role in the movement of economy's wheel of Pakistan.Balance use of fertilizer can improve the crop-yields by integrating the economic & environmental needs of the country to be in sustainable level, but the demand of fertilizer as per crop yield and rising fertilizer prices in the markets depressing the small-households in rural areas to increase their cost of production for required fertilizer nutrients of their crops.In this order, a field survey has been conducted to evaluate the indigenous fertilizer markets supply system and impacts of fertilizer prices on yield, how subsidy and regulated polices are benefited to agriculture growth in the country.This research paper has analyzed those factors which is influencing the farmers purchasing decisions on fertilizer and its application by considering the market challenges faced by farmers