Question Q.14GS3GS3
The agricultural subsidy regime in the country needs reforms to address the distortions it causes. Comment.
Main Body
As per the Economic Survey, GoI spent about 1.5 lakh crores on various agricultural subsidies - fertilizer subsidies, Power subsidies, subsidies for agri-ITPs Distortions: - high subsidy on Ureainoptimal fertiliser mix - 8:2:1 instead of 4:2:1degradation of soil, water pollution, air pollution - high subsidy on PowerProduction of highly water intensive crops in dry areas Punjab, Haryana [↑ in cost↑ in MSP↑ in govt burden
↓ fall in ground water table - 75% water units in Punjab below safe level CGWB - Distorted agri-feed systems [↑ large production of wheat & rice, ↑ low production of millets/pulses/edible oilshigh import dependence - Benefits of subsidies - highly concentrated among large farmers - Unequal regional development - areas in East India are falling behind areas in NW India. Reforms: - Targeted agri-subsidies - mostly to small & marginal farmers
Include Urea in Nutrient Based Subsidy Scheme NBS - Promote use of organic fertilisers - Ex via PM-PRANAM - Give push to PM-KUSUM - to ↓ Power subsidies - Allocate more money from agri-sector's share to specs fixed capital formation GFCF in agri - Reform the PDS system - to reduce procusement of wheat/rice - Separation of agri-electricity, feeders (Minis shah Committee) The current agri-subsidy regime needs immediate reform to reduce burden on the govt, make agri dynamic & improve farmers' incomes
232 words1 paragraphs1 bullet points
Conclusion
The current agri-subsidy regime needs immediate reform to reduce burden on the govt, make agri dynamic & improve farmers' incomes
20 words
Topper
ADITYA PATHAK
AIR 1892025
Subject & Paper
GS3GS3
Topic
Agriculture and Food Security
Issues Related to Direct & Indirect Farm Subsidies & Minimum Support Prices
Agricultural subsidies and distortions
Writing Stats
252
Total words
1
Paragraphs
1
Bullets
analytical
Tone