Which of the following statements about agricultural subsidies in India during 1950--1990 are correct?
• [(A)] Subsidies encouraged farmers to adopt new technology.
• [(B)] Benefits mainly went to farmers in prosperous regions.
• [(C)] Removing subsidies would increase inequality.
• [(D)] Poor farmers cannot afford inputs without subsidies.
Show Hint
Agricultural subsidies helped increase production during the Green Revolution, but their benefits were often unevenly distributed among regions and farmers.
Step 1: Understanding the Concept:
Agricultural subsidies refer to the financial assistance provided by the government to farmers so that they can purchase inputs (like fertilizers, electricity, and seeds) at a price lower than the market rate.
In the context of 1950-1990, subsidies were used as a major policy tool to ensure the adoption of Green Revolution technologies. Step 2: Detailed Explanation:
Let's analyze the validity of each statement: Statement (A): Modern farming (HYV seeds) requires chemical fertilizers and assured irrigation, which are expensive and risky for traditional farmers. Subsidies lowered the "cost of entry," thereby encouraging farmers to adopt this new technology. This is correct. Statement (B): Historical analysis shows that since the Green Revolution was most successful in Punjab, Haryana, and Western UP, the farmers in these "prosperous regions" consumed the lion's share of subsidized electricity and fertilizers. This regional imbalance is a well-documented fact. This is correct. Statement (C): Economists argue that if subsidies are removed, the price of inputs would skyrocket. While rich farmers might still manage, small farmers would be forced to return to traditional, low-yield farming. This would widen the income gap (inequality) between big and small farmers. This is correct. Statement (D): Most Indian farmers are "marginal" or "small," meaning they own less than 2 hectares of land. They lack the capital to buy industrial inputs at market prices. Without subsidies, these inputs would be unaffordable for them. This is correct.
Because all four statements capture different facets of the debate over agricultural subsidies during the planning era, option (3) is the most comprehensive and correct choice. Step 3: Final Answer:
All the listed statements correctly describe the various socio-economic impacts and justifications for agricultural subsidies in India between 1950 and 1990.
