Question:

Which of the following statements about agricultural subsidies in India during 1950--1990 are correct?
• [(A)] Subsidies encouraged farmers to adopt new technology.
• [(B)] Benefits mainly went to farmers in prosperous regions.
• [(C)] Removing subsidies would increase inequality.
• [(D)] Poor farmers cannot afford inputs without subsidies.

Show Hint

Agricultural subsidies helped increase production during the Green Revolution, but their benefits were often unevenly distributed among regions and farmers.
Updated On: May 30, 2026
  • A, B, D only
  • A, B, C only
  • A, B, C and D
  • B, C, D only
Show Solution
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The Correct Option is C

Solution and Explanation

Concept: Agricultural subsidies are financial supports provided by the government to farmers in order to:
• Reduce the cost of agricultural inputs
• Encourage modern farming techniques
• Increase agricultural productivity
• Support weaker sections of farmers In India, subsidies became important especially after the Green Revolution period.

Step 1:
Analyzing Statement (A).}
Subsidies on fertilizers, electricity, irrigation, and seeds reduced production costs and encouraged farmers to adopt:
• HYV seeds
• Chemical fertilizers
• Modern irrigation methods Hence, Statement (A) is correct.

Step 2:
Analyzing Statement (B).}
The major benefits of subsidies were often received by farmers in prosperous agricultural regions such as:
• Punjab
• Haryana
• Western Uttar Pradesh These regions had better irrigation and infrastructure facilities. Therefore, Statement (B) is correct.

Step 3:
Analyzing Statement (C).}
If subsidies are removed:
• Small and marginal farmers may suffer heavily.
• Rich farmers can still afford expensive inputs.
• Economic inequality among farmers may increase. Thus, Statement (C) is also correct.

Step 4:
Analyzing Statement (D).}
Poor farmers generally depend on subsidies to purchase:
• Fertilizers
• Seeds
• Electricity
• Irrigation facilities Without subsidies, many of them cannot afford these agricultural inputs. Hence, Statement (D) is correct.

Step 5:
Selecting the correct option.}
Since all four statements are correct, the correct answer is: \[ \boxed{\text{A, B, C and D}} \]
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