Agriculture
IOSR Journal of Humanities and Social Science (JHSS)
ISSN: 2279-0837, ISBN: 2279-0845. Volume 2, Issue 4 (Sep-Oct. 2012), PP 40-46 www.iosrjournals.org www.iosrjournals.org 40 | Page
Agricultural Subsidies in India Boon or Curse
Rajwinder Kaur1 , Dr.Manisha Sharma2
1Researcher, Department of Economics, Punjabi University, Patiala (Punjab), India. E-mail:
2Assistant Professor, Department of Distance Education, Punjabi University, Patiala (Punjab), India. E-mail:
Abstract: A progressive agriculture serves as a powerful engine of economic growth of any country. It helps in initiating and sustaining the development of other sectors of the economy. In view of this, after independence the
Government of India adopted a positive approach and specific programmes like new agriculture technology were introduced. Indian farmers being poor were not in a position to buy these expensive inputs.Then the Indian
Government started the scheme of subsidies on the purchase of various agriculture inputs to facilitate the farmers. Subsidies are often criticized for their financial burden, on the other hand there is a fear that agriculture production and income of farmers would decline if subsidies are curtailed. The findings indicate that the increasing rate of total subsidies (fertilizers, electricity and irrigation) is higher than gross cropped area (GCA) during pre, first as well as second phase of liberalization periods. There is a lot of variation to find out the relationship between gross cropped area (GCA) and in total subsidies in zones throughout the study period. The present study suggests that Government should keep aside its motive to please voters or strengthen the vote bank, it should frame rational policy in which small size category farmers, who are not actual beneficiaries of subsidies, could get more and subsides, which they do not want should be withdrawn.
Keywords:-agriculture, electricity subsidy, fertilizers subsidies, irrigation subsidy,
ISSN: 2279-0837, ISBN: 2279-0845. Volume 2, Issue 4 (Sep-Oct. 2012), PP 40-46 www.iosrjournals.org www.iosrjournals.org 40 | Page
Agricultural Subsidies in India Boon or Curse
Rajwinder Kaur1 , Dr.Manisha Sharma2
1Researcher, Department of Economics, Punjabi University, Patiala (Punjab), India. E-mail:
2Assistant Professor, Department of Distance Education, Punjabi University, Patiala (Punjab), India. E-mail:
Abstract: A progressive agriculture serves as a powerful engine of economic growth of any country. It helps in initiating and sustaining the development of other sectors of the economy. In view of this, after independence the
Government of India adopted a positive approach and specific programmes like new agriculture technology were introduced. Indian farmers being poor were not in a position to buy these expensive inputs.Then the Indian
Government started the scheme of subsidies on the purchase of various agriculture inputs to facilitate the farmers. Subsidies are often criticized for their financial burden, on the other hand there is a fear that agriculture production and income of farmers would decline if subsidies are curtailed. The findings indicate that the increasing rate of total subsidies (fertilizers, electricity and irrigation) is higher than gross cropped area (GCA) during pre, first as well as second phase of liberalization periods. There is a lot of variation to find out the relationship between gross cropped area (GCA) and in total subsidies in zones throughout the study period. The present study suggests that Government should keep aside its motive to please voters or strengthen the vote bank, it should frame rational policy in which small size category farmers, who are not actual beneficiaries of subsidies, could get more and subsides, which they do not want should be withdrawn.
Keywords:-agriculture, electricity subsidy, fertilizers subsidies, irrigation subsidy,
References: [1] Chahal, T.S., Machanisation of Punjab Agriculture and its impact (Macrosd Printers, Amritsar, 1994). [2] Singh, Surrender ,Agricultural Development in India-A Regional Analysis (Kaushal Publication, Amritsar,1994). [3] Fan, Shengyen, Ashok Gulati and SukhaseoThorat ,Investment, Subsidies and Pro-poor growth in Rural India, Agricultural Economic, 39(2), 2008, 163-170 [4] Gulati, Ashok and SudhaNarayanan ,The subsidy syndrome in Indian Agriculture(Oxford University Press, New Delhi, 2003) [5] Government of Punjab, Agriculture Department, Chandigarh Weekly,47(7),,1982 66-71 [8] Gulati, Ashok , Investment, subsidies and pro-poor growth in rural India, Economic andPolitical Weekly, 18(3), 2007 [9] Bhalla, G.S. , Indian Agriculture, Uppal Publisher House, New Delhi, 1994, 6-10 [10] Government of Punjab, Statistical Abstract, various years [11] Halmandage, B.V. and Dr.N.N.Munde,A Study of fertilizer subsidy in India, International Research Journal, 1(7), 2010, 45-50 [12] Government of India, Fertilizer Association, fertilizer statistics, various issues, New Delhi.