The government withdraws support prices and input subsidies, holding…

The government withdraws support prices and input subsidies, holding that it should not interfere in markets. Many small farmers then cannot make a decent living from agriculture. Which policy does this illustrate?

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Liberalisation

Option (1) Green Revolution — Incorrect. The Green Revolution raised farm output with high-yielding seeds, fertilisers and state support. It added government help to farming.

Option (2) Land reforms — Incorrect. Land reforms are state laws that change land ownership and protect tenants. They are a form of government action in rural life.

Option (3) Liberalisation — Correct. Liberalisation is against government interference in markets, so support prices and subsidies are reduced or withdrawn. As a result many farmers cannot make a decent living from agriculture.

Option (4) Commercialisation of agriculture — Incorrect. Commercialisation of agriculture means farmers grow crops mainly for sale in the market. It describes a change in farming practice.

NCERT (2026-27): “Debate on Liberalisation – Market Versus State …
For example, Indian farmers are now exposed to competition from farmers in other countries because import of agricultural products is allowed. Earlier, Indian agriculture was protected from the world market by support prices and subsidies. Support prices help to ensure a minimum income for farmers because they are the prices at which the government agrees to buy agricultural commodities. Subsidies lower the cost of farming because the government pays part of the price charged for inputs (such as fertilisers or diesel oil). Liberalisation is against this kind of government interference in markets, so support prices and subsidies are reduced or withdrawn. This means that many farmers are not able to make a decent living from agriculture. …”