Assertion: Some economists believe that the government should continue with agricultural subsidies because farming in India continues to be a risky business.

Reasoning: Eliminating subsidies will increase the inequality between rich and poor farmers and violate the goal of equity.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Some economists believe that the government should continue with agricultural subsidies because farming in India continues to be a risky business. Most farmers are very poor and they will not be able to afford the required inputs without subsidies. Eliminating subsidies will increase the inequality between rich and poor farmers and violate the goal of equity. These experts argue that if subsidies are largely benefiting the fertiliser industry and big farmers, the correct policy is not to abolish subsidies but to take steps to ensure that only the poor farmers enjoy the benefits.