Question

“Every coin has two sides - debate over farm subsidies is one such classic example of the same.” Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.

Hint:

Farm subsidies must be structured to support needy farmers while ensuring sustainable fiscal management.

Answer 1

Understanding Farm Subsidies Debate:
- Farm subsidies support farmers but also create fiscal challenges and market distortions. Arguments in Favour of Farm Subsidies:
1. Reduces Income Inequality: - Removing subsidies could widen the income gap between large and small farmers.
2. Supports Small Farmers: - Many marginal farmers rely on subsidies to afford seeds, fertilizers, and irrigation.
Arguments Against Farm Subsidies:
1. Greater Benefit to Fertilizer Industry: - Some subsidies disproportionately benefit input suppliers rather than farmers.
2. Heavy Burden on Government Finances: - Large subsidies create fiscal stress, diverting funds from other developmental priorities.
Conclusion: A balanced approach is necessary to ensure fair benefits without excessive financial burdens.