Which of the following are true about subsidies in the agricultural sector during 1950-1990 in India? (A) Subsidies were needed to encourage farmers to test the new technology (B) Subsidy largely benefits the farmers in the more prosperous regions (C) Eliminating subsidies will increase inequality between rich and poor farmers and violate the goal of equity (D) Most farmers are very poor and they will not be able to afford the required inputs without subsidies Choose the correct answer from the options given below:
Between 1950 and 1990 in India, agricultural subsidies were instrumental and can be understood through the following points:
(A) Subsidies encouraged farmers to adopt new technology: During India's Green Revolution, subsidies were necessary to promote the adoption of new agricultural technologies, overcoming resistance to change from traditional farming methods.
(B) Subsidies disproportionately benefited prosperous regions: Although intended for all farmers, subsidies primarily aided those in more developed areas with better market access, irrigation, and infrastructure, thus exacerbating regional inequalities.
(C) Subsidy removal would worsen inequality and undermine equity: Subsidies made essential inputs affordable for poorer farmers, acting as a safety net. Their elimination would increase costs for these farmers, widening the economic gap with wealthier farmers.
(D) Many poor farmers require subsidies to afford necessary inputs: A significant portion of India's farmers are smallholders with limited capital. Without subsidies, they would struggle to purchase vital inputs, negatively impacting their output and livelihoods.
The comprehensive conclusion is: (A), (B), (C), and (D).
