The correct answer is Option (3) → (A), (B), (C) and (D)
All of the statements are true about subsidies in the agricultural sector during 1950-1990 in India.
Here's a breakdown of why each statement is true:
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(A) Subsidies were needed to encourage farmers to test the new technology: During the Green Revolution, subsidies on inputs like fertilizers and irrigation were crucial to incentivize farmers to adopt new, high-yielding varieties of seeds. These new technologies, while promising higher yields, also required significant upfront investments.
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(B) Subsidy largely benefits the farmers in the more prosperous regions: Subsidies often disproportionately benefited larger, more prosperous farmers who had better access to resources and information. Smaller, marginal farmers often struggled to access these benefits.
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(C) Eliminating subsidies will increase the inequality between rich and poor farmers and violate the goal of equity: Removing subsidies could significantly impact small and marginal farmers who heavily rely on them for their livelihoods. This could exacerbate income inequality within the agricultural sector.
(D) Most farmers are very poor and they will not be able to afford the required inputs without subsidies: During this period, a large portion of India's farming population consisted of small and marginal farmers with limited resources. Subsidies provided crucial support to make agricultural inputs more affordable for these farmers.
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