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Critically analyse whether subsidies should be …

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Critically analyse whether subsidies should be given in agriculture? Explain?

Posted by Risita Sahu 5 years, 10 months ago

CBSE > Class 12 > Economics

1 answers

Harsh Vardhan 5 years, 10 months ago

On critically analysing the need of subsidies in agriculture we need to look at both merits and demerits . MERITS ●Reduce income inequality ●Agriculture continues to be a risky business and farmers don't have adequate means ● High cost of inputs ● Regional disparity in agruculture neccisitates the need of subsidies DEMERITS ●Burden on government ●No benefit to farmers , real benefit goes to the industries ● Subsidies were introduced to give incentive to farmers to purchase modern inputs ,since now these requirements are fulfilled subsidies should be eliminated We can conclude that subsidies are still necessary in agriculture

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