Roadmap for Answer Writing 1. Introduction Define agricultural subsidies and their purpose. Mention the various types of subsidies provided in India (fertilizer, irrigation, etc.). 2. Impact of Subsidies A. Cropping Pattern Explain how subsidies influence the choice of crops. Fact: In Punjab, cheap electricity and irrigation subsidies ...
It is an integrated farm system that deals with a unit of a farm, integrating diverse farming practices within it. Usually, crop production is combined with livestock production on the same unit such as poultry, dairy, piggery, aquaculture, and agroforestry (tree cultivation). Benefits for small andRead more
It is an integrated farm system that deals with a unit of a farm, integrating diverse farming practices within it. Usually, crop production is combined with livestock production on the same unit such as poultry, dairy, piggery, aquaculture, and agroforestry (tree cultivation).
Benefits for small and marginal farmers in India
Income diversification : IFS allows multiple sources of income and diversifies income; hence, not dependent on single crops, thereby raising overall profitability.
-Resource Efficiency: Animal waste is applied as manure to crops thereby reducing the dependence on external inputs. Water usage is optimized throughout the different parts.
-Improved Soil Health: Legumes and cover crops contribute to soil fertility; hence, lesser chemical fertilizers are required.
-Risk Mitigation: The crop failure because of weather or pests is minimized with diversification.
-Enhanced Food Security: It provides the farmer’s family with a well-balanced diet, and it could also be offered to the local community.
Environmental Sustainability: It supports organic farming, which is also sustainable and decreases the environmental footprint of agriculture.
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Model Answer Introduction An agricultural subsidy is an incentive paid by the government to farmers as a supplement to their income, aimed at maintaining the supply of agricultural commodities. In India, subsidies cover various aspects such as fertilizer, irrigation, equipment, credit, seed, and expRead more
Model Answer
Introduction
An agricultural subsidy is an incentive paid by the government to farmers as a supplement to their income, aimed at maintaining the supply of agricultural commodities. In India, subsidies cover various aspects such as fertilizer, irrigation, equipment, credit, seed, and export subsidies.
Impact of Subsidies on Cropping Pattern, Crop Diversity, and Economy of Farmers
Subsidies significantly influence the cropping patterns in agricultural regions. Crops that receive substantial subsidies tend to dominate the landscape. For instance, in Punjab, the availability of cheap electricity and irrigation subsidies has led farmers to cultivate water-intensive crops like rice, which has resulted in a skewed cropping pattern favoring these crops over others.
The provision of subsidies often discourages crop diversity. Farmers are incentivized to grow subsidized crops, leading to a reduction in the cultivation of diverse crops. To counteract this, governments have begun to announce subsidies for alternative crops to promote greater crop diversity.
Subsidies provide a safety net for farmers by reducing their dependence on volatile market forces, ensuring a more stable income. While this can help farmers sustain their livelihoods during adverse market conditions, it can also create a dependency on government support, potentially leading to inefficiencies in the agricultural sector and limiting farmers’ responsiveness to market signals.
Significance for Small and Marginal Farmers
Crop insurance serves as a protective measure against crop failures due to unforeseen events, helping small and marginal farmers avoid financial ruin. By paying a small premium, farmers can secure future support in case of crop loss.
The MSP guarantees a minimum price for certain agricultural commodities, ensuring that small and marginal farmers receive fair compensation for their produce, even when market prices are low.
Food processing industries provide a stable market for small farmers, allowing them to add value to their products. By processing and packaging their produce, farmers can sell at higher prices, thereby improving their financial stability.
Conclusion
Subsidies, crop insurance, minimum support price (MSP), and food processing play crucial roles in supporting small and marginal farmers. However, it is essential to design and implement these policies carefully to achieve their intended goals without unintended consequences.
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