Question

Read the following statements carefully and choose the correct answer from the following:
Statement 1: Subsidies reduce the income inequality between rich and poor farmers and to achieve the ultimate goal of equity.

Statement 2: Necessary steps should be taken to ensure that every farmer enjoys the benefits of subsidies.

[0.80 marks]

• A. Both the statements are true.
• B. Both the statements are false.
• C. Statement 1 is true and Statement 2 is false.
• D. Statement 2 is true and Statement 1 is false.

Answer 1

The correct option is D Statement 2 is true and Statement 1 is false.

In India, subsidies are necessary because
(i) The majority of the farmers are very poor and they will not be able to afford the required inputs without the subsidies.
(ii) To reduce the income inequality between rich and poor farmers and to achieve the ultimate goal of equity.
However, necessary steps should be taken to ensure that only poor farmers enjoy the benefits of subsidies and not the fertiliser industry and big farmers.