Practicing Success
Which of the following is not true about subsidies in agriculture in India ? |
They encourage adoption of technology The make required inputs affordable to the farmers It reduces the cost of production for the producers It increases the cost of production for the producers |
It increases the cost of production for the producers |
The correct answer is option (4) : It increases the cost of production for the producers In fact, subsidies are intended to do the opposite. Subsidies in agriculture are intended to make required inputs (such as seeds, fertilizers, pesticides, etc.) more affordable to farmers, thereby reducing the cost of production. They also encourage the adoption of technology by making it more accessible and affordable. |