This paper examines the political economy of the agricultural policy processes in Malawi through the lenses of the fertilizer subsidy programme that has raised the profile of the country on the international stage since 2006. Malawi is a regular feature in the international agricultural policy debates as a model for the rest of Africa to emulate in order to achieve a uniquely African Green Revolution (Dugger, 2007; Perkins, 2009; AGRA, 2009). Through its subsidy programme, and against fierce resistance by donors as well as some local fiscal conservatives, the argument is that Malawi has pioneered the implementation of smart subsidy that has transformed the country from a perpetual food beggar for close to two successive decades to a self reliant nation.