it is believed by some of …

 Subsidies bring about equity between rich and poor farmers by enabling the poor farmers to use modern technology and inputs. On the other hand, some economists believe that once subsidies should be phased out since their purpose has been served and the technology is now widely adopted due to its profitability. They argue that there is no case for continuing with subsidies as It does not benefit the target group and it is a huge burden on the government's finances. They give the following arguments against subsidies in agriculture (i) Subsidies are benefiting the fertilizer industry more than farmers and it is not making any efforts towards increasing its efficiency as it is protected from market competition by subsidies. (ii) Subsidies are mainly being availed by big farmers in affluent regions who do not actually need them. Hence, based on the above arguments, we can conclude that although subsidies are very useful and necessary for poor farmers and to overcome uncertainties associated with farming. It may lead to wastage of resources and thus put an excessive burden on the scarce government finances. Thus, suitable reforms need to be undertaken in order to ensure allocation of subsidies in a targeted manner only to the needy farmers.