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AGRICULTURAL SUBSIDIES AND MINIMUM SUPPORT PRICE
Contents
1. Introduction
2. Agriculture Subsidies
2.1. Types of Agriculture Subsidies in India
2.1.1. Explicit Input Subsidies
2.1.2. Implicit Input Subsidies
2.1.3. Output Subsidies
2.1.4. Food Subsidies
2.2. Agriculture Subsidies on the basis of Mode of Payment
2.2.1. Direct Subsidies
2.2.2. Indirect Subsidies
2.3. Issues related to Agriculture Subsidies and their Possible Resolution
2.4. Agriculture Subsidies and WTO
2.4.1. Historical Background
2.4.2. Indian Agriculture Subsidies and WTO
3. Agriculture Pricing Policies
3.1. Minimum Support Price
Commission for Agricultural Costs and Prices (CACP)
4. GS Mains Test Series Questions
1. The imbalance between subsidy expenditure and expenditure on public investment in agriculture call for a long-term strategic re-orientation. Analyse.
Answer:
2. Highlight the strengths and weaknesses of the current MSP regime. What are the changes required to strengthen it and help it achieve its stated policy objectives?
Answer:
3. With reference to Bali decision clearly stating that Peace clause under Agreement on Agriculture (AoA) would remain in force, until permanent solution is found, can we say that India was at least partially successful in placing ‘Food Security Box’ and ‘Development Box’ alongside ‘Green Box’? Analyze. Also, suggest some remedies to counter the adverse effects of huge Green Box subsidies offered by developed nations to their farmers.
Answer:
4. Agricultural subsidies are hotly contested at the WTO negotiations. What are the concerns of developing countries, especially India, vis-a-vis the attitude of developed countries on the issue? What is Special Safeguard Mechanism (SSM)? In this context, what are the reasons underlying India’s keenness on a permanent solution on public stockholding for food security?
Answer:
5. Excess subsidies are doubly detrimental to Indian agriculture; on one side they cause market distortion and a burden on national exchequer; on the other, they lead to environmental degradation. It is also true that Indian agriculture can’t sustain without the subsidies. Subsidies are a kind of imbroglio. Analyze.
Answer:
Reasons against the subsidies in agriculture
5. Past Year UPSC Questions
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