QUES . How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of the crop insurance, minimum support price and food processing for small and marginal farmers? UPSC 2017 GS MAINS PAPER 3 250 words, 15 marks
HINTS:
Government policies play a crucial role in shaping India’s agricultural landscape. Agriculture in India is deeply influenced by subsidies, crop insurance, minimum support price (MSP), and now from food processing initiatives.
Effects of subsidies on cropping pattern, crop diversity, and farmers’ economy
Effect of subsidies on cropping pattern
Subsidies directly influence the cropping pattern of an area. The crops that receive better and more attractive subsidies are selected for growing. The larger the subsidy the larger is the area of a particular crop in a region.
Electricity subsidies promote excessive groundwater extraction for irrigation, causing environmental issues and unsustainable cropping patterns. For example, cheap electricity and irrigation subsidies motivated Punjab farmers to go for water guzzling crops like rice.
Effect of subsidies on crop diversity
Input subsidies lower the cost of fertilizers, seeds, and irrigation, encouraging farmers to grow more input-intensive crops, potentially reducing crop diversity. By providing incentives for farmers to grow certain crops, subsidies can reduce crop diversity.
MSPs for certain crops (e.g., rice and wheat) may lead to monoculture, as farmers prioritize these crops over others, negatively affecting crop diversity and soil health. Thus, the governments have started announcing subsidies for crops other than paddy and wheat so as to increase crop diversity.
Effect of subsidies on economy of farmers
Subsidies reduce the dependence of farmers on market forces by providing a guaranteed income for their crops. Moreover, subsidy provides a safety net for farmers, allowing them to continue farming even in difficult market conditions. On the other hand, subsidies create a dependency on government support, which can lead to inefficiencies in the agricultural sector and limit the ability of farmers to respond to market signals.
Significance of the crop insurance, minimum support price and food processing for small and marginal farmers
Significance of crop insurance for small and marginal farmers
Provides financial protection to farmers against crop losses due to natural disasters, pests, or diseases, ensuring income stability.
Farmers with insurance are more likely to invest in better inputs and technology, potentially increasing productivity and income.
Significance of minimum support price for small and marginal farmers
Guarantees a minimum price for certain crops, protecting farmers from market fluctuations and ensuring a stable income.
Ensures sufficient production of staple crops, contributing to national food security.
Significance of food processing for small and marginal farmers
Processing adds value to agricultural produce, increasing farmers’ income potential.
Proper storage and processing facilities help reduce post-harvest losses, ensuring better returns for farmers.
Food processing industries can generate employment, benefiting rural communities.
Subsidies, crop insurance, minimum support price (MSP), and food processing can each play a role in supporting small and marginal farmers in different ways. However, it is important to carefully design and implement them to ensure that they achieve their intended goals and do not have unintended consequences.
