15. How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, Minimum Support Price (MSP) and food processing for small and marginal farmers? (250 words) 15M
Ans. The subsidies in the agriculture sector are the most important benefit that the government is providing to the farmers since independence. There are different types of subsidies that a farmer gets like fertilizer, irrigation, seed, power, credit, price, infrastructure, export etc.
These subsidies affect cropping pattern, crop diversity and economy of farmers in both positive and negative ways.
On Cropping Pattern As fertiliser irrigation and price subsidy allows the farmer to grow a crop which is not grown in the region before, however the disproportionate price subsidy gives rise to skewed distribution of cropping pattern as the rainfed states are growing water-intensive crops because of their high MSPs.
On Cropping Diversity It is said that these subsidies have led to reduction in the diversity of the crops, as the MSP of wheat, rice is higher than the pulses and oil seeds, this prevents the farmers from cultivating other crops and affects the crop diversity in a negative manner.
Economy of Farmers As all these subsidies are a kind of indirect and direct benefit to the farmers. These to a certain extent have reduced the input cost of the farmers but on the same hand it also lead to the groundwater table lowering, use of excess fertiliser has led to the decrease in the quality of soil and disproportionate pricing subsidy has reduced the market price of the crops.
Significance of Other Factors on Small and Marginal Farmers
• Crop Insurance It provides security to the farmers against the disasters and effects of monsoon. It increases the capacity of the farmers to be resilient and protect them from falling in the debt cycle, famines and ultimately committing suicide. This acts like an insurance for a farmer's life.
• MSP MSP if proportionately decided then it can led to increase in diversification of crops and management of a good cropping pattern. This will allow the farmers to take more risks and grow crops according to the regions. This will also restrain the farmer from growing -water intensive crops in the rainfed area.
• Food Processing Units These units give the opportunity to farmers to grow crops like horticulture, oil seeds etc. These units also allow the farmer to go for contract farming which in future reduces the post harvest loss, distress selling of farmer alongwith providing a good price to them.
We need all these components to drive the agriculture's growth for doubling the income of the farmers for their produce.
Ans. The subsidies in the agriculture sector are the most important benefit that the government is providing to the farmers since independence. There are different types of subsidies that a farmer gets like fertilizer, irrigation, seed, power, credit, price, infrastructure, export etc.
These subsidies affect cropping pattern, crop diversity and economy of farmers in both positive and negative ways.
On Cropping Pattern As fertiliser irrigation and price subsidy allows the farmer to grow a crop which is not grown in the region before, however the disproportionate price subsidy gives rise to skewed distribution of cropping pattern as the rainfed states are growing water-intensive crops because of their high MSPs.
On Cropping Diversity It is said that these subsidies have led to reduction in the diversity of the crops, as the MSP of wheat, rice is higher than the pulses and oil seeds, this prevents the farmers from cultivating other crops and affects the crop diversity in a negative manner.
Economy of Farmers As all these subsidies are a kind of indirect and direct benefit to the farmers. These to a certain extent have reduced the input cost of the farmers but on the same hand it also lead to the groundwater table lowering, use of excess fertiliser has led to the decrease in the quality of soil and disproportionate pricing subsidy has reduced the market price of the crops.
Significance of Other Factors on Small and Marginal Farmers
• Crop Insurance It provides security to the farmers against the disasters and effects of monsoon. It increases the capacity of the farmers to be resilient and protect them from falling in the debt cycle, famines and ultimately committing suicide. This acts like an insurance for a farmer's life.
• MSP MSP if proportionately decided then it can led to increase in diversification of crops and management of a good cropping pattern. This will allow the farmers to take more risks and grow crops according to the regions. This will also restrain the farmer from growing -water intensive crops in the rainfed area.
• Food Processing Units These units give the opportunity to farmers to grow crops like horticulture, oil seeds etc. These units also allow the farmer to go for contract farming which in future reduces the post harvest loss, distress selling of farmer alongwith providing a good price to them.
We need all these components to drive the agriculture's growth for doubling the income of the farmers for their produce.