6. While subsidies encourage farmers to use new technology, they lead to a huge stress on the
government finances. Discuss the usefulness of subsidies in the light of this fact.
(Hint: - It is true that subsidies have facilitated the use of HYV technology leading to Green
Revolution in India
Answers
Answer:
Explanation:
It has been rightly said that subsidies encourage farmers to use new technology but they are also a huge burden on government finances.
Points for usefulness of subsidies:
Subsidies help in encouraging farmers to use new and innovative technology.
In India, more than 50% of the farmers are very poor and cannot afford new technology in their farming activity. In this regard, the government can help them by providing subsidies.
The abolishment of subsidy will violate the goal of equity because it raises differences between poor and rich farmers in India.
The application of new technology in farming will increase the total output of agricultural products in developing nations.
Points against subsidies:
Some economists are of the view that once technology is widely accepted, the government should stop providing goods at subsidised rates.
Subsidies are provided to benefit farmers, but it has been observed that the fertiliser industry has benefited more than farmers.
Also, farmers from prosperous regions benefited from subsidies more than farmers from poor areas.
It has been rightly said that subsidies encourage farmers to use new technology but they are also a huge burden on government finances.
Points for usefulness of subsidies:
Subsidies help in encouraging farmers to use new and innovative technology.
In India, more than 50% of the farmers are very poor and cannot afford new technology in their farming activity. In this regard, the government can help them by providing subsidies.
The abolishment of subsidy will violate the goal of equity because it raises differences between poor and rich farmers in India.
The application of new technology in farming will increase the total output of agricultural products in developing nations.
Points against subsidies:
Some economists are of the view that once technology is widely accepted, the government should stop providing goods at subsidised rates.
Subsidies are provided to benefit farmers, but it has been observed that the fertiliser industry has benefited more than farmers.
Also, farmers from prosperous regions benefited from subsidies more than farmers from poor areas.
Explanation:
Arguments in favour of subsidies : Following arguments are given in favour of subsidies : 1. Farming in India is a risky business. Most farmers are very poor and they will not be able to afford the required inputs without subsidies. 2. Eliminating subsidies will increase the inequality between rich and poor farmers and violate the goal of equality. 3. If subsidies are largely benefiting the fertilizer industry and big farmers, the correct policy is not to abolish subsidies but to take steps that only the poor farmers enjoy the benefit. 4. For providing an incentive for adoption of the new technology by farmers agricultural subsidies are essential. Without it small farmers will not be able to adopt new technology. Conclusion : The government should not withdraw agricultural subsidies. 450 Views Z Switch O Flag Bookmark