Topic: Issues related to direct and indirect farm subsidies and minimum support prices;
Q5. Analyse the role of fertiliser subsidies in ensuring agricultural stability in India. Examine the major concerns associated with the present subsidy framework. (10 M)
Difficulty Level: Medium
Reference: NIE
Why the question
Rising global fertiliser prices and the growing subsidy burden have revived debates on the sustainability of India’s agricultural support framework and its implications for food security and fiscal management.
Key Demand of the question
The question requires analysing how fertiliser subsidies contribute to agricultural stability in India and examining the major concerns and limitations associated with the existing subsidy framework.
Structure of the Answer:
Introduction
Briefly mention the significance of fertiliser subsidies in supporting agricultural production, farmer welfare and food security.
Body
- Agricultural stability: Explain how fertiliser subsidies support farm productivity, income stability and resilience against input price shocks.
- Food security and economic support: Highlight their role in ensuring affordable cultivation and sustaining national foodgrain output.
- Concerns in the subsidy framework: Discuss issues such as fiscal burden, nutrient imbalance, environmental concerns, import dependence or targeting inefficiencies.
Conclusion
Conclude by stressing the need for a balanced and sustainable fertiliser policy that protects farmers while improving efficiency, fiscal sustainability and resource conservation.
