Nothing symbolises the damage caused by India’s absurd farm subsidies more than the need to shift the IPL out of Maharashtra.
The 6 million litres of water that would have been used in the matches — shocking in a drought-hit state — are what producing just 3 tonnes of sugar in the state consumes, and the state produces 8-9 million tonnes each year since water is available for free.
ICRIER points out that India’s Rs 175,000-180,000 crore of annual agriculture subsidies are around three times the government’s capital formation — in other words, cut subsidies and you can invest more. Investing the same amount of money on R&D — to produce drought- and flood-resistant GM seeds, for instance — is 22 times more effective than fertiliser subsidies when it comes to both boosting agricultural growth and in terms of being able to reduce poverty.
