What are the subsidies?
Subsidies are the concessions given by the government to promote the use or production of any goods. It makes goods cheaper compare to the market price. So, for the small and marginal farmers, it refers to the availability of inputs at lower prices than the market price. To promote green revolution https://learnwithanjali.com/measures-to-solve-agricultural-problems-technical-reforms/
The government started providing it to the farmers for the adoption of the green revolution and making it easier for the farmers to afford High Yielding Variety seeds.
Why Subsidies should be given?
- To encourage farmers to test the new technology.
- Most farmers are poor and are unable to afford the required inputs without the help of these types of concessions.
- Removing subsidies will lead to an increase in the inequality between rich and poor farmers and it goes against the goal of equity.