Analysis of Farm Subsidies in India

Abstract

 India’s agricultural policy encompasses a wide range of strategies, regulations and reforms aimed at enhancing productivity, ensuring food security, improving farmers’ live hoods and making agriculture sustainable and resilient. Agricultural subsidies in India are a set of financial aids provided by the government to support the farmers and enhance the agricultural productivity. These subsidies covers various aspects of farming  which includes fertilizers, seeds, irrigation and electricity, aiming to reduce the cost of production and improve the income of small and marginal farmers.  In this paper, an attempt is made to find out the scenario of agricultural subsidies during 1980-81 to 2023-24 in India. Results show that during 2024-25 the percentage share of agricultural subsidies is 2.7 per cent of the total budged expenditure of central government, which is 5 per cent highest as compared to 2023-24. The government of India should make it possible to use subsidies more effectively when they are needed to promote agricultural development and to reform them when they are no longer needed.