Question Q.14GS3GS3
The agricultural subsidy regime in the country needs reforms to address the distortions it causes. Comment.
Main Body
An agricultural subsidy in India allows for agri-cultural output, limiting entry (16% of agri-cultural output), limiting growth of the industry. It urgently requires reforms. Distortions caused by subsidies in agriculture: (1) Market distortions - (MSP-led) Majorly rice & wheat lead to acquired values and wheat, & although mainly controlled by FCI, usually out private investment. (2) Fiscal distortions - Agri subsidies & 24% & BDPsignificant fiscal burden. (3) Agri-cultured distortions -
73 words1 paragraphs
Topper
Prachet
AIR 1932025
Subject & Paper
GS3GS3
Topic
Agriculture and Food Security
Issues Related to Direct & Indirect Farm Subsidies & Minimum Support Prices
Issues Related to Direct & Indirect Farm Subsidies & Minimum Support Prices
Writing Stats
73
Total words
1
Paragraphs