UPSC MAINS 25/11/22

 QUESTION:-How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers?



INTRODUCTION:_-

 •Government subsidizes agricultural inputs in an attempt to keep farm costs low and production high. There are various subsidies available to farmers in terms of cheap input credit, seeds and fertilizers, subsidized electricity and irrigation etc. Agriculture subsidies always have some impact on various activities of agriculture.

 Body:

 •Cropping pattern:- Crop selection gets distorted in favour of those crops which have high share of subsidies or attract large volume of subsidies. For example cheap electricity and irrigation subsidies motivated Punjab farmers to go for water guzzling crops like rice.

 •Crop diversity:.

 Crop diversity gives way to the standard staple crops where there is assured market and cost of production is low due to subsidies. For example wheat and rice are the standard crops in present times for Rabi and Kharif season respectively.

•Economy of farmers:

 Various subsidies ensure income support to farmers and safe stock of food grains. But at the same time it leads to distorted production patterns, resulting in food inflation. Significance of various factors on small and marginal farmers 

•Crop insurance: 

It provides income security in case of crop failure due to natural and other reasons. It also gives them a cushion against their investment in agricultural activities. 

•Minimum Support Price:

Minimum prices ensure a minimum guaranteed income for the crops thereby hedging them from market fluctuations. Guarantee of a buyer while cultivation of crops gives a sense of financial security to the farmer.

 •Food processing: 

Through value addition it ensures not only better income but long shelf life for the agro products. For the country like India where the wastage is high and over 80% of farmers are small and marginal with limited capacity, their income base can be enhanced through food processing

 Conclusion: •There is an unmet demand for rice and wheat which is met by millets. If consumers see millets as a solution to lifestyle disorders, producers have realised that it requires less inputs and is an economically viable option if marketing avenues are created

                                                                                        

                                                                      BY:-SANJAY KUMAR SAH

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