Introduction
Minimum Support Prices (MSP) are pre-announced rates at which the government purchases crops from farmers, ensuring a safety net against price fluctuations. Introduced in 1966-67, MSP aims to prevent distress sales and incentivize production. According to economist C. Rangarajan, MSP stabilizes farmer income and ensures food security. The Commission for Agricultural Costs and Prices (CACP) recommends MSP for 23 crops, balancing farmer interests and consumer needs, thus playing a crucial role in India's agricultural policy.
Enroll Now
What are the different types of agriculture subsidies given to farmers at the national and state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it. (UPSC 2013, 10 Marks, )
किसानों को राष्ट्रीय और राज्य स्तर पर दिए जाने वाले विभिन्न प्रकार के कृषि सब्सिडी क्या हैं? कृषि सब्सिडी व्यवस्था का आलोचनात्मक विश्लेषण करें, इसके द्वारा उत्पन्न विकृतियों के संदर्भ में।View Answer
Introduction
Agricultural subsidies in India, as defined by the Food and Agriculture Organization (FAO), are financial aids provided to farmers to enhance productivity and ensure food security. At the national and state levels, these include input subsidies like fertilizers, power, and irrigation, and price support mechanisms such as the Minimum Support Price (MSP). However, as noted by economist Ashok Gulati, these subsidies often lead to market distortions, inefficiencies, and environmental degradation, necessitating a critical evaluation of their long-term impacts.
Read
More
Electronic cash transfer system for the welfare schemes is an ambitious project to minimize corruption, eliminate wastage and facilitate reforms. Comment. (UPSC 2013, 10 Marks, )
कल्याण योजनाओं के लिए इलेक्ट्रॉनिक नकद हस्तांतरण प्रणाली भ्रष्टाचार को कम करने, अपव्यय को समाप्त करने और सुधारों को सुविधाजनक बनाने के लिए एक महत्वाकांक्षी परियोजना है।View Answer
Introduction
The Electronic Cash Transfer System for welfare schemes is a transformative initiative aimed at enhancing transparency and efficiency in public service delivery. According to the World Bank, digital payments can reduce leakage by up to 47%. By directly transferring benefits to beneficiaries' bank accounts, this system minimizes corruption and wastage, aligning with Amartya Sen's advocacy for technology-driven governance reforms. This approach not only ensures accountability but also empowers citizens by providing timely access to entitlements.
Read
More
In what way could replacement of price subsidy with Direct Benefit Transfer (DBT) change the scenario of subsidies in India? Discuss. (UPSC 2015, 13 Marks, )
मूल्य सब्सिडी को प्रत्यक्ष लाभ अंतरण (DBT) से बदलने पर भारत में सब्सिडी के परिदृश्य में किस प्रकार परिवर्तन हो सकता है? चर्चा करें।View Answer
Introduction
The Direct Benefit Transfer (DBT) system aims to enhance the efficiency of subsidy distribution by directly transferring funds to beneficiaries' accounts, reducing leakages and corruption. According to the Economic Survey 2016-17, DBT could save the government up to Rs. 50,000 crore annually. Jean Drèze, a noted economist, argues that DBT can empower beneficiaries by providing them with the freedom to choose, thus potentially transforming the subsidy landscape in India.
Read
More
Introduction
Read
More
Introduction
Minimum Support Price (MSP) is a government-set price to purchase directly from farmers, ensuring a minimum profit for their harvest. Introduced in 1966-67, MSP aims to prevent distress sales and stabilize farmers' income. According to the Commission for Agricultural Costs and Prices (CACP), MSP acts as a safety net, protecting farmers from volatile market prices. By guaranteeing a fixed income, MSP helps farmers avoid the low-income trap, promoting agricultural sustainability and economic stability.
Read
More
Reforming the government delivery system through the Direct Benefit Transfer Scheme is a progressive step, but it has its limitations too. Comment. (UPSC 2022, 10 Marks, )
प्रत्यक्ष लाभ अंतरण योजना के माध्यम से सरकारी वितरण प्रणाली में सुधार एक प्रगतिशील कदम है, लेकिन इसकी कुछ सीमाएँ भी हैं।View Answer
Introduction
The Direct Benefit Transfer (DBT) Scheme aims to enhance the efficiency of government delivery systems by directly transferring subsidies to beneficiaries, reducing leakages and ensuring transparency. According to the Economic Survey 2020-21, DBT has saved over ₹1.78 lakh crore by eliminating intermediaries. However, Amartya Sen cautions that while DBT is transformative, it may exclude marginalized groups lacking digital access, highlighting the need for inclusive infrastructure to address these limitations.
Read
More
What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies. (UPSC 2023, 15 Marks, )
भारत में कृषि क्षेत्र को प्रदान की जाने वाली प्रत्यक्ष और अप्रत्यक्ष सब्सिडी क्या हैं? कृषि सब्सिडी के संबंध में विश्व व्यापार संगठन (WTO) द्वारा उठाए गए मुद्दों पर चर्चा करें।View Answer
Introduction
Agricultural subsidies in India encompass both direct support, like Minimum Support Prices (MSP), and indirect aids, such as fertilizer and power subsidies. The World Trade Organization (WTO) has raised concerns over India's subsidy regime, arguing it distorts global trade by exceeding the de minimis limits set under the Agreement on Agriculture. Critics, including economist Amartya Sen, emphasize balancing farmer welfare with international trade obligations to ensure sustainable agricultural growth.
Read
More