Some experts support agricultural subsidies. They accept that a large part of the fertiliser subsidy goes to the fertiliser industry and big farmers. What policy do these experts suggest?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Keep the subsidies, but take steps so that only the poor farmers enjoy the benefits.
The supporters say farming is still risky and most farmers are poor. If the subsidy is going to the wrong people, they want it targeted, not removed.
Option (1) Abolish all fertiliser subsidies at once, as they do not reach the target group. — Incorrect. This is the view of the critics of subsidies.
Option (2) Raise the subsidies further, so that big farmers can grow even more output. — Incorrect. Helping big farmers more would widen inequality, which the supporters want to avoid.
Option (3) Pay the subsidies to the fertiliser industry directly, instead of to farmers. — Incorrect. The supporters object that the subsidy already benefits the industry too much.
Option (4) Keep the subsidies, but take steps so that only the poor farmers enjoy the benefits. — Correct. Supporters want the benefit to reach only the poor farmers.
NCERT (2026-27): “2.3 Agriculture … On the other hand, some 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. …” |