Question

Given below are two statements :
Statement (I) : A direct subsidy is a kind of subsidy which is provided to the farmers by the government in the form of cash for example farm waiver schemes, PM Kisan scheme etc.
Statement (II) : An indirect subsidy is a kind of subsidy that is being provided via discount on other agricultural purchase like seeds and fertilizers
In light of the above statements, choose the most appropriate answer from the options given below.

• A. Both Statement (I) and Statement (II) are correct.
• B. Both Statement (I) and Statement (II) are incorrect.
• C. Statement (I) is correct but Statement (II) is incorrect.
• D. Statement (I) is incorrect but Statements (II) is correct.

Hint:

Remember the main difference:
- Direct Subsidy: Cash flows directly into the farmer's pocket (e.g., PM-KISAN, loan waivers).
- Indirect Subsidy: Provided through cheaper inputs (e.g., subsidized fertilizer, free power, cheap seeds).

Answer 1

The Correct Option is A