Agrarian crisis: Direct transfer more efficient, effective than input subsidies
Updated: February 12, 2019 6:52:20 AM
The government subsidises agriculture in a number of ways. It provides direct subsidy through fixation of minimum support price for essential crops and purchase of machinery, drip and sprinkler irrigation under various centrally-sponsored schemes. The indirect subsidy is extended through provision of inputs such as irrigation, fertiliser and power at prices much below their cost of production.