Write Arguments against and in favour of Agriculture subcidy
Answers
Answer:
Fertiliser and irrigation subsidies have widened regional disparities to some extent. ADVERTISEMENTS: ii. The maximum benefit of subsidisation of inputs is reaped only by large farmers, who possess the capacity to buy inputs at higher prices.
ANSWER
______________________________________
Arguments in favour of Subsidy :
• It encourages farmers to adopt intensive cultivation which ensures increase in food grain Production.
•The number of small and marginal farmers in a country is large who are unable to buy high price inputs. therefore subsidy on inputs is necessery.
•Subsidy is helpful in reducing disparaties of income among rich and poor farmers.
______________________________________
Arguments Against Subsidy :
•Government has to bear a large economic burden through increase in budgetary deficit.
•Subsidy has given more benefits to rich farmers which has resulted in income inequalities among farmers.
•Subsidy should be phased out as the objective of encouraging farmers for intensive cultivation has been served. Subsidies were granted by the government to encourage the adoption of HYVS technology which had widely been adopted.
______________________________________