Which of the following is not true about subsidies in agriculture in India ?
Answer & explanation
Correct answer: option 4
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.