With reference to the debate on agricultural subsidies in India, consider the following statements: 1. Subsidies were initially provided to encourage farmers, especially small farmers, to adopt the new HYV technology. 2. Critics argue that fertiliser subsidies primarily benefit the fertiliser industry and farmers in prosperous regions. 3. Supporters of subsidies advocate that eliminating them would reduce inequality between rich and poor farmers. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2, and 3

Answer: A

Notes:

Explanation:

Subsidies were needed to encourage adoption of risky new technologies like HYV seeds.
Critics argue that subsidies largely benefit the fertiliser industry and rich farmers.
Eliminating subsidies would increase, not reduce, inequality between rich and poor farmers.

Source- 12th NCERT: Economics: Macroeconomics

Subscribe to get the latest posts sent to your email.