Question

“Farm subsidies put a huge burden on the government finances, but are necessary for the poor and marginal farmers.” Justify the given statement.

Hint:

Farm subsidies play a crucial role in reducing income inequalities among farmers, ensuring that small and marginal farmers can compete with larger producers.

Answer 1

Farm subsidies are vital, despite their cost, due to these key factors:
Assistance for Smallholders: Subsidies offer financial lifelines to small and marginal farmers, facilitating their acquisition of essential inputs like fertilizers, seeds, and irrigation.  
Ensuring Food Security: They contribute to stable agricultural output, thereby safeguarding the nation's food supply. 
Bridging Rural Wealth Gaps: Subsidies help lessen income disparities in rural regions by bolstering farmers with fewer resources.