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Question
“The debate over farm subsidies in India is enraged at different platforms.”
Discuss any two arguments in favour of continuing farm subsidies.
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Solution
Arguments in favour of continuing farm subsidies:
- Reduces the gap between rich and marginal farmers: Agriculture is a risky business, and many farmers are impoverished. They do not have adequate funds to purchase the necessary inputs. Subsidies for marginal farmers are thus required to close the gap between rich and poor farmers.
- Reduction of Cost: Subsidies for seeds, fertilizers, and electricity lower the cost of production. Reduced costs assist not just farmers but also the final customer by lowering the prices of agricultural products, which are necessary commodities for people.
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