Payment of subsidies to agricultural inputs such as fertilizers and pesticides increases uncontrolled and no optimum use of these production factors and it results in increase of administrative costs. Unintended consequences of distribution of subsidies have been caused developing countries follow economic policies for eliminating subsidies to accelerate economic growth. One of agriculture production in Iran that has production subsidies is onion. Iran has 50068 Hectare cultivable land and statistically, has produced about two million tons onion in 1386. This study has been carried out identified and analysis of fertilizer subsidy removal in the onion production in Tabriz plain area in crop year 1387-88. Survey includes all farmers that produced onion in Tabriz plain area. Information necessary to achieve the research objectives through questionnaires from 200 local farmers were collected. Data were analyzed by use of quadratic generalized translog, generalized leontiof. The results of this study showed that production factors such as fertilizers, sand, water and cultivable land have significant effect on onion production function. Fertilizer requires shows that the amount of fertilizer consumption is not sensitive to price changes after the implementation of liberalization policies and significant decrease will not be seen in consumption of this input. This indicates that this input is an essential input in the onion production in Tabriz plain area and even with the price liberalization policy, farmers almost the same amount of input prior purchase from the open market. Applying the optimum level of inputs show that all four inputs fertilizer, sand, water and land, over-optimization is used, therefore it is recommended in order to use economic factors, logical fit between the inputs is preserved.