Question

Which of the following points indicates the importance of subsidy?

Options

• The subsidy is very important for marginal landholders and poor farmers 

• Subsidy in the 1960s was basically an incentive for the farmers to adopt modem techniques and vital inputs like fertilisers, HYV seeds, etc. 

• The subsidy is generally provided to the poor farmers with the motive of reducing inequality of income between rich and poor farmers 

• All of the above 

Answer 1

All of the above

Explanation:

The following are some arguments in favor of subsidies:

1. Subsidies are critical for marginal landowners and poor farmers who cannot afford vital agriculture supplies at market prices.
2. Subsidies in the 1960s were primarily intended to encourage farmers to embrace modern farming techniques and essential inputs such as fertilisers and HYV seeds. The incentive was primarily persuasion-based and financially rewarding so that farmers would not hesitate to employ modern technology.
3. Subsidies are typically given to poor farmers with the goal of minimising economic disparities between rich and poor farmers and promoting an equitable distribution of income.