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“To promote green revolution, the Indian Government provided fertilizer subsidies to the farmers.” Briefly explain any two arguments in favour of such subsidies. - Economics

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Question

“To promote green revolution, the Indian Government provided fertilizer subsidies to the farmers.”

Briefly explain any two arguments in favour of such subsidies.

Explain
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Solution

At the beginning of the Green Revolution, around 1966, HYV seeds, irrigation, and chemical fertilizers were used.

The two key arguments in favour of such subsidies are:

  • Around 86% of farmers in India were small and marginal, and fertilizer aid enabled them to buy fertilizer.
  • Equity will be violated, and the gap between wealthy and poor farmers will widen if subsidies are eliminated.
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2024-2025 (March) Outside Delhi Set 1
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