ForumIAS LATEST
- FRC 2027: SFG Residential program | accepting application for Tranche-2 Click Here to know more →
- CSAT Classes for Prelims 2027 by Rishi Bhargav sir starts 16 Nov. at 5 PM Click Here to know more →
- Prelims Sprint classes 2027: Starts 2nd Nov. at 4:30 PM | First class open to all. Click Here to know more →
News: The article analyses agrarian crisis and the proposed solution of universal basic income (UBI).
Facts:
- A removal of all agricultural subsidies, ranging from fertilizer to those on interest, water and power, and distributing the savings among most of the rural population through UBI is being proposed as a solution to rural distress.
- At its core the agrarian crisis is a case of agricultural activity not yielding enough returns for a section of the farming population and one reason being declining farm sizes.
- As the population grows the process of fragmentation of the family farm will continue further.
- The impact of public investment on both the yield of land and rural poverty is far greater than that of fertilizer, electricity, irrigation and interest rate subsidy.
- In a study, the investments were found most valuable in “educational” sector and on rural roads.
- But, today agricultural subsidies are five times larger than the investment in agriculture.
What is needed?
- Today the need is to eliminate agricultural subsidies and channelize the resources towards increasing public investment.
- Eliminating subsidies merely to implement a universal basic income would be unwise, for above mentioned reasons.
