Question

Which of the following are true about subsidies in the agricultural sector
during 1950-1990 in India?
(A) Subsidies were needed to encourage farmers to test the new technology
(B) Subsidy largely benefits the farmers in the more prosperous regions
(C) Eliminating subsidies will increase inequality between rich and poor farmers and violate
the goal of equity
(D) Most farmers are very poor and they will not be able to afford the required inputs without
subsidies
Choose the correct answer from the options given below:

• A. (A), (B), and (D) only
• B. (A), (B), and (C) only
• C. (A), (B), (C), and (D)
• D. (B), (C), and (D) only

Answer 1

The Correct Option is C

During the period from 1950 to 1990 in India, subsidies in the agricultural sector played a significant role and can be analyzed through several points: 

• (A) Subsidies were needed to encourage farmers to test the new technology: During this time, India was undergoing a Green Revolution, introducing new agricultural technologies which required encouragement through subsidies to ensure farmers adopted these innovations, particularly because traditional methods were deeply entrenched.
• (B) Subsidy largely benefits the farmers in the more prosperous regions: While subsidies aimed to support all farmers, the infrastructure and accessibility issues meant that farmers in developed regions, which were more integrated into markets with better irrigation and infrastructure, benefited more, creating regional disparities.
• (C) Eliminating subsidies will increase inequality between rich and poor farmers and violate the goal of equity: Subsidies provided a cushion for poorer farmers by making inputs like fertilizers and seeds affordable. Eliminating them would increase costs disproportionately for poorer farmers, widening the gap between them and wealthier growers who could afford higher prices.
• (D) Most farmers are very poor and they will not be able to afford the required inputs without subsidies: A large proportion of India's farming community consisted of small and marginal farmers with limited financial resources. Without subsidies, affording essential inputs would be challenging, severely impacting their productivity and livelihoods.

The correct answer that encompasses all these aspects is: (A), (B), (C), and (D).

Answer 2

All statements are correct regarding subsidies in India's agricultural sector during 1950-1990. During this period, the Indian government implemented a range of subsidies to promote agricultural growth and ensure food security. These subsidies were essential for supporting farmers and encouraging the adoption of modern agricultural practices.

Some of the key subsidies provided during this time included subsidies on fertilizers, irrigation, and seeds. These subsidies were aimed at making essential agricultural inputs more affordable and accessible to farmers, especially small and marginal ones, helping them increase their productivity.

Additionally, the government also provided price supports and minimum support prices (MSP) for certain crops, ensuring that farmers received a guaranteed price for their produce, even when market prices were volatile. This policy was designed to protect farmers' incomes and encourage them to produce more food grains.

However, while these subsidies played a crucial role in boosting agricultural output, they also led to some unintended consequences, such as the overuse of chemical fertilizers and water resources. Over time, the sustainability of these subsidies became a topic of debate, especially with the rising concerns about environmental degradation.

Nonetheless, the subsidies provided during 1950-1990 were integral to India's Green Revolution and helped improve agricultural productivity, contributing to the country's food security and economic development.