Agriculture Subsidies

Agriculture Subsidies News

Agriculture Subsidies are provided to farmers on farm inputs like fertilisers, seeds, farm machinery and electricity. These subsidies have been under attack from the economists and international organisations like WTO.

In this section, we will provide you with all the updates and concepts linked to agriculture subsidies.

Updates and news on agriculture subsidies for UPSC/IAS examination: 

  • How the 1.5-times formula for crops MSP is calculated?
    News: The talks between farmer unions and the government failed to reach a resolution.The main bone of contention in these talks is the Minimum Support Price (MSP) for crops which farmers fear the new laws will do away. Facts: MSP: It is the minimum price paid to the farmers for procuring food ...
  • Need for the procurement system
    Context- Dismantling the procurement system is neither in the interests of farmers nor the government. What are the concerns of farmers related to new farmer’s acts? Farmer’s concern-  Their main worry is about a possible withdrawal of the Minimum Support Price (MSP) and a dismantling of the public procurement of grains. This could corporatize ...
  • Farmer’s protest
    Context – Massive communication failure on the part of the central government to explain to farmers what these laws are, and how they are intended to benefit them. What is the farmer’s and States concern with regard to new farm laws? Farmer’s fear- This could corporatize agriculture, threaten the current mandi network and ...
  • Farm Bills and MSP
    Source: Indian Express GS3: Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices Context: The recently enacted farm bills have triggered debate on the desirability of the MSP regime. More in news: The period from 2004 to 2012 was the period of high commodity prices, high government procurement and rapid ...
  • Relook agriculture subsidies
    Context– The dire need to shift the nature of support to farmers from input subsidies to investment subsidies. What are the main reason of air pollution in India and its impact? Stubble Burning – Practice of farmers setting fire to plant debris that remain in farms after harvest. It emits large amounts of toxic pollutants ...
  • Government clears Fertiliser Subsidies
    Context: In a step to clear dues of fertiliser companies the government has allotted an additional Rs 65,000 crore towards fertiliser subsidy for 2020-21, over and above the already-budgeted Rs 71,309 crore. Why clearing the arrears in fertiliser subsidy is important? To build faith on government schemes: Fertiliser firms have to sell ...
  • Pesticides Management Bill (PMB), 2020
    The Pesticides Management Bill (PMB), 2020 was introduced in the Rajya Sabha in March 2020. It seeks to replace the Insecticides Act, 1968. Facts: Aim: To protect the interest of farmers and ensure they get safe and effective pesticides. Key Features: Information to Framers: Farmers would be empowered to get all information regarding ...
  • Planned changes to NBS Scheme
    Context: Centre is planning to restrict the number of fertiliser bags that individual farmers can buy during any cropping season under the Nutrient Based Subsidy(NBS) Scheme. Background A policy of subsidising fertilisers was started in the later period of the Green revolution to increase agriculture production. It resulted in the increased production of ...
  • Nutrient-based subsidy
    Context: Cap on subsidised fertiliser under nutrient-based subsidy (NBS) only addresses issue of its diversion, doesn’t fix overuse by farmers. What is nutrient-based subsidy (NBS) regime for fertilisers? Under the scheme, a fixed amount of subsidy, based on the nutrient content present in them is provided on each grade of subsidized Phosphatic ...
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