Should Agricultural Subsidies be stopped?

Last Updated: Mar 13, 2013

Dec 30 • Group Discussion • 12649 Views • 149 Comments on Should Agricultural Subsidies be stopped?

Agricultural Subsidies be stopped

Should agricultural subsidies stopped or not has been topic of talk shows without proper representatives from farming side  ,According to my opinion agriculture subsidy should not be stopped as our agriculture contribute 15% to our GDP and 60% of total employment beside it we know that our economy is agriculture dependent and beside it 95% of farmer comes under small land holding farmer who are not able to do cultivation without subsidies. We know that agriculture input is crucial thing for cultivation of land and our farmer can not afford that much of costly input.

agriculture subsidies

agriculture subsidies should be removed or not

I think instead of stopping agriculture subsidy we should focus on.

Agriculture policy which restrict the produce within the state some state not allow to sell or buying the produce in other state which increase the cost and inflation also along with this.

To impose levied duty on essential commodities,

And monopoly condition in procurement of produce (cotton in Maharastra).

All these factor cause huge cost to farmer and less price for their produce.

Along with these farmer can not afford the costly fertilizer which is important factor to increase yield also and if govt will not provide subsidy than how farmer can produce and fulfill the consumption need of India.

Obstacles for the farmer.

1. Indian farmers have less land and are basically illiterate or less educated.
2. Obstacles to understand and apply the technology.
3. Government Subsidies don’t reach to themselves as the larger part of the subsidies are theft by the middlemen or bought by the rich farmers.
4. Gambling is done during monsoon.
5. The Infrastructure of Storing Crop, like Cold Storage is not available on every area -this is why 30% of Yearly Production of Vegetables in India are rotten.

Government should take appropriate steps to face these challenges.
Providing higher rate of subsidies to the marginal farmers and lower rate to the rich farmers.
Providing appropriate teaching of innovative methods to every farmer.
Growth of Canal and Tank Irrigation.
Low Rate Loans and Crop Insurance Facility should be provided.
The Govt should also inspect the Proper Distribution of Subsidy.
This is how the Government should meet the challenges and ensure the Farm Productivity.

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149 Responses to Should Agricultural Subsidies be stopped?

  1. Jayanta Das says:

    I don’t think there is any need of stopping the subsidy provided to the farmers. Even subsidies should be increased in order to help them because this is the segment of society which is most affected on the change of economy.
    Various pre measures can be taken by government so that farmers doesn’t need any subsidy like-
    1. Integrating all the small land owned farmers to increase productivity.
    2. Provide better and efficient irrigation methods in areas where there is scarcity of water.
    3. Efficient deployment of various plans built by government.
    As the agriculture of India is mainly dependent on monsoons is greatly affected by flood and drought conditions in this case the only hope for farmers is the subsidies and various plans of government to help those poor farmers that have very less lands and can’t afford to spend on seeds and fertilizers.
    with the upcoming NATIONAL FOOD SECURITY BILL the availability of food grains should be must so that we have not to import it from other countries in that case agriculture subsidies must be given to the people of India.

  2. Nandita Pradhan says:

    Farmers need subsidy in order to survive. People who feeds us unfortunately remains starved. Farmers are poor they cannot adopt new technology in order to increase production so subsidy should not be stopped. The main cause is that the farmers are ill-literate and they are dependent on agriculture so government should arrange subsidies according to the farmers level. That is higher level farmers getting less subsidies and lower level getting higher subsidies.
    Government should provide proper fertilizer, seeds less loans special schemes and others. Subsidies thus is regarded as the main part of farmers. And farmers are always the important part of each and every human in order to survive.

  3. BRAJA GOPAL BERA says:

    An agricultural subsidy is a governmental subsidy paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities. Examples of such commodities include wheat, feed grains (grain used as fodder, such as maize or corn, sorghum, barley, and oats), cotton, milk, rice, peanuts, sugar, tobacco, and oilseeds such as soybeans. A very large part of Indian economy is dependent upon agriculture. But unfortunately the people who feed us often remains starved. Its because they do not get proper value of their labour. But at the same time cost of foods in the market is at the peak. Then where do all the money go ? Nobody knows ! So, the government should provide them subsidy. They should also be provided good quality seeds, fertilizer, easy loans, special schemes to get instruments like tractors etc. The government should also fix a good minimum value for their products.

  4. Subhradip Roy says:

    Unarguably every farmer needs subsidy in present political system.

    Subsidy can be removed provided farmers are given the opportunity to fix price for their products like others in other sectors and are allowed to export their products with out govt intervention.

    We need to understand the whole lot of issues and uncertainties of farming community.

    How many of us go to work when our transportation expenses are more than what we earn?

    How long do we do business when the business is running in to losses?

    But, farmer do not have secondary option.

    Input cost for farming like pesticides, insecticides, nutrients, manure, labour charges, diesel charges, machinery charges like tractor etc. , charges for repairing water pumps all these have increased abnormally. For example male labour charge increased 3. 5x to 4x. In-spite of this availability of labour is not easy in most of the villages.

    On top of this, adequate power is not available for farmers. Low/voltage issues burn motors frequently and transformer issues all these expenses goes from farmers pocket. On top of this bribe for transco guys.

    If these things go well, weather may not support. Some times drought and at times heavy rains and floods.

    Even if every thing goes goes fine and once the product comes to market, minimum support price that is promised to the farmer is not given many times. In the present scenario, even if the farmer gets minimum support price they will run in to losses. And this is the reason why farmers started agitation declaring crop holiday in some parts of the country and some ransacking agri markets.

    People want all the pulses, food grains, milk, meat, eggs at a cheaper price and no one fights for the farmer who feeds billions of mouths.

    If oil companies goes in to losses govt jumps in and increases price more than 10 to 15 times in few years and why not the same for the poor farmer?

    It is true that poor people suffer if food prices go high. This does mean that the farmers have to give subsidized products to all making losses working under hot sun/rain walking between snakes and scorpions. In a way farmer is giving food security to all billionaires and poor workers investing his resources and in turn making loss for what he/she do.

    Moreover, one need to notice that Indian youth are no longer interested in doing farming. Number of youth doing farming are decreasing to a greater extent. None neither the farmers son nor the farm workers son interested nor their parents want their kids to do farming. This explains the scenario. Who is going to feed billions of mouths.

    Most shocking thing is that none of them either from urban or rural areas are not showing interest to elope their daugher to a young farmers even if they are holding 30 acres of land. These guyz and their families are really frustrated as they are cornered in the society.

    All the above factors are forcing people to move out of agriculture. What will happen next. Corporate agriculture? If so, are the corporate going to sell products at a cheaper price? They’ll give millions to those who help them in making things easier by forcing farmers out of this sector. Where do they collect these millions from?

    The above facts are based on my experience and observation.

  5. Susanta Dinda says:

    A very large part of Indian economy is dependent upon agriculture. But unfortunately the people who feed us often remains starved. Its because they do not get proper value of their labour. But at the same time cost of foods in the market is at the peak. Then where do all the money go ? Nobody knows ! So, the government should provide them subsidy. They should also be provided good quality seeds, fertilizer, easy loans, special schemes to get instruments like tractors etc. The government should also fix a good minimum value for their products.

  6. Rajan Tiwari says:

    First of all is our government giving subsidy on necessary items what a farmer need. They are giving subsidy on seeds not on fertilizers even they give subsidy for fertilizers they are not readily available 80% goes to black market rest will be distributed to the favorable people. We Indians don’t give value to our farmers try to feel the pain of a farmer, they are still doing agriculture is the reason they love it not they are getting huge profits on it.

    Think what a farmer really needs and support those even a road side hotel person will feed there family with 3 meals a day which is not happening with farmers. Give them some moral support they are not asking all for free they are ready to pay if it is a valuable item which boosts their productivity, they are paying a min. of 250/- Rs to each labor and they are not able to spend 150 for their family. That is the situation of moderate and small farmers in India, still we can’t hear their moaning, media to improve their ratings will go to some farmers, if media is really trying to help farmers Indian farmers will not be in this situation.

    Finally subsidy is just like a smile from a child who expects at least a peppermint and the father saying wait for 5years I will give you a 5star.

  7. Sanjib Karmakar says:

    I think instead of stopping agriculture subsidy we should focus on.

    Agriculture policy which restrict the produce within the state some state not allow to sell or buying the produce in other state which increase the cost and inflation also along with this.

    To impose levied duty on essential commodities,

    And monopoly condition in procurement of produce (cotton in Maharastra).

    All these factor cause huge cost to farmer and less price for their produce.

    Along with these farmer can not afford the costly fertilizer which is important factor to increase yield also and if govt will not provide subsidy than how farmer can produce and fulfill the consumption need of India.

  8. Amalendu Biswas says:

    According to my opinion agriculture subsidy should not be stopped as our agriculture contribute 15% to our GDP and 60% of total employment beside it we know that our economy is agriculture dependent and beside it 95% of farmer comes under small land holding farmer who are not able to do cultivation without subsidies. We know that agriculture input is crucial thing for cultivation of land and our farmer can not afford that much of costly input.

    I think instead of stopping agriculture subsidy we should focus on.

    Agriculture policy which restrict the produce within the state some state not allow to sell or buying the produce in other state which increase the cost and inflation also along with this.

    To impose levied duty on essential commodities,

    And monopoly condition in procurement of produce (cotton in Maharastra).

    All these factor cause huge cost to farmer and less price for their produce.

  9. Sourav sain says:

    I think 60-70 % Indian population are living in villages and most of them depend upon farming for their survival.
    It gives employment to many people of India belonging to rural areas. so according to me agriculture should not all banned.
    In India agriculture play an important role .because many people depend on agriculture land.
    Government should take appropriate steps to face these challenges.
    Providing higher rate of subsidies to the marginal farmers and lower rate to the rich farmers.

  10. Mayank says:

    Farmer should be extra knowlede of the subdies because we know that ,the farmer who living in the village they don’t know about the subsidies and their is some people are eletrate .they do not know about the methods of farming but they lives in the small viledeges and the way of their living is only farming so they should aware to the farming.We cannot think of stopping the agricultural subsidies because India is a developing country where more than 70% population depends on agriculture for its survival. Besides, most of the villagers are poor and illiterate. Subsidies given to them are an aid which reduce their incapability to become self-reliant. Also by giving them subsidies, government can make them satisfied and thus, motivates them to grow more and more so as to fulfill the need of hunger.

  11. Taniya Bhattacharyya says:

    Agricultural subsidies should be stopped as they are not reaching to the poor farmers.
    – There is no use of these subsidies as they make rich farmers more rich and the poor ones poorer.
    – There should be other substitutes for subsidies.
    – Even after providing the subsidies the farmers are abondoning their land and moving to cities. The government should make agriculture an attractive profession.
    – Rather than giving subsidies, the government should help the farmers with a better infrastructure like means of irrigation and getting their produce to the market.
    – One of the reasons for farmers to abandon their lands is that they do not get good cost for their produce. The government should help in better organization of the market so that it becomes accessible to the farmers.

    Government should provide farmers with more subsidies in order to improve their living conditions.
    – Agriculture is a seasonal occupation i.e. farmers work only during the non rainy season. Thus it does not provide enough income to the farmers to sustain for the whole year.
    – New policies related to subsidies should be made and applied in an efficient manner in order to help the farmers to earn a good income to elevate their standard.
    – The condition of farmers in our country is deteriorating day by day. To stabilize the state of farmers’ government need to take some important steps by providing them with enough subsidies.
    – Subsidies help in strengthening the agricultural sector.
    – Subsidizing helps in tackling food prices and reducing trade deficit as it improves food supply

  12. Saurabh Jajoo says:

    agricultural subsidy should not be stopped because our country has a number of poor farmers and due to the hike prices of agricultural input, subsidy has to be provided.

  13. Kinsuk Sadhukhan says:

    The monoculture system associated with subsidized large-scale production has been implicated as a contributory factor in Colony Collapse Disorder which has affected bee populations. Bee pollination is an essential ecosystem service essential for the production of many varieties of fruits and vegetables. Subsidies often go towards subsidising meat production which has other nutritional and environmental implications; and it has been found that out of the $200Bn subsidies to subsidise crops from 1995-2010 around two thirds of this went to animal feed, tobacco and cotton production.Government intervention, through agricultural subsidies, interferes with the price mechanism which would normally determine commodity prices, often creating crop overproduction and market discrimination. Subsidies are also an inefficient use of taxpayer’s money. For instance, in 2006, the Department of Agriculture estimated that the average farm household income was $77,654 or about 17% higher than the average U.S. household income.From a public economics perspective, subsidies of any kind work to create a socially and politically acceptable equilibrium that is not necessarily Efficient.

  14. Rajib Dey says:

    An agricultural subsidy is a governmental subsidy paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities. Examples of such commodities include wheat, feed grains (grain used as fodder, such as maize or corn, sorghum, barley, and oats), cotton, milk, rice, peanuts, sugar, tobacco, and oilseeds such as soybeans.The impact of agricultural subsidies in developed countries upon developing-country farmers and international development is well documented. Agricultural subsidies depress world prices and mean that unsubsidised developing-country farmers cannot compete; and the effects on poverty are particularly negative when subsidies are provided for crops that are also grown in developing countries since developing-country farmers must then compete directly with subsidised developed-country farmers.

  15. Subhendu Ghosh says:

    Agricultural subsidies should not be stopped, because many farmers can’t handle the burden of total investment. It’ll be nice if government provide these subsidies to the farmers, who deserve it not to the rich.
    • 60% of Indian economy is from agricultural based industries. So, we should give more importance to agriculture.
    • It will be difficult for farmers to keep the total investment for crop. As a result farmers may change their career. It’ll be a biggest disadvantage for India.
    • Because of agricultural subsidies, the price of food products will be in control.
    • United States and Europe countries have subsidies for agriculture. So, if India stops agricultural subsidies, then there will be a risk of importing under-priced food from these countries.
    • Through agricultural subsidies, more numbers of fields will be utilized. So, the Indian economy increases.
    • There are so many cases of suicide of farmers which we are seeing regularly because of lack of support from government.
    subsidies should be provided to the farmers based upon their socio – economic condition like more subsidy should be given to the poor farmers while the rich farmers can be provided with somewhat less amount of subsidies as they can easily need their needs.this will bring about a balance between the rich and poor farmers..

  16. Shweta Chattopadhyay says:

    What I think is subsidies not be stopped in the agricultural field but should be provided to the farmers based upon their socio-economic condition like more subsidy should be given to the poor farmers while the rich farmers can be provided with somewhat less amount of subsidies as they can easily meet their needs.This will bring about a balance between the rich and poor farmers..

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