Question

Some economists argue that farmers in other countries, particularly developed countries, are provided with high amount of subsidies and are encouraged to export their produce to other countries. Do you think our farmers will be able to compete with farmers from developed countries? Discuss.

Answer 1

1. Indian farmers may struggle to compete with farmers in developed countries because those farmers often receive greater financial and technological support.
2. Farmers in developed countries may receive subsidies for seeds, fertilisers, machinery, insurance, and exports, which can reduce their production costs.
3. Indian farmers, especially small farmers, often have smaller landholdings and fewer resources.
4. Many Indian farmers also face problems such as high input costs, uncertain rainfall, limited storage and weak access to markets.
5. However, Indian farmers can compete in products where India has advantages, such as spices, tea, rice, fruits, vegetables and some labour-intensive crops.
6. Better irrigation, technology, storage, transport, credit and market facilities can improve their competitiveness.
7. Government support should focus especially on small and marginal farmers, so they can improve productivity and reduce costs.
8. India can also raise concerns in international trade forums when subsidies in developed countries create unfair competition.

Hence, Indian farmers can compete internationally, but they need better technology, infrastructure, credit, market access and fair support. Without these improvements, competing with highly subsidised farmers from developed countries can be difficult.