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4) Discuss the reforms carried out in recent years to benefit the farming sector? Evaluate how successful DBT has been for farmers?(250 words)

Topic – Indian agriculture – issues

4) Discuss the reforms carried out in recent years to benefit the farming sector? Evaluate how successful DBT has been for farmers?(250 words)

Financial express

Why this question

The article discusses the reforms carried out for the farming sector and the impact of direct benefit transfer versus the impact of subsidies. At a time when farming sector is showing its displeasure over their status and demanding reforms, the question would help us in examining the issue deeply.

Key demand of the question

The question expects us to bring out the reforms carried out for agricultural sector and discuss their impact. Thereafter , we need to examine how successful DBT has been in achieving its stated aims and the way forward for agricultural sector in terms of reforms.

Directive word

Discuss – Your discussion should revolve around the reforms in farming sector and its impact.

Evaluate – When you are asked to evaluate, you have to pass a sound judgement about the truth of the given statement in the question or the topic based on evidences.  You have to appraise the worth of the statement in question. There is scope for forming a personal opinion here.

Structure of the answer

Introduction – Explain about the status quo of agricultural sector and highlight some of the issues being faced.

Body

  • Discuss the reforms carried out for farming sector such as with respect to MSP, crop insurance, irrigation, e-NAM etc and discuss how impactful they have been in terms of alleviating issues faced by the sector.
  • Thereafter, discuss the objectives of introduction of DBT and examine how successful it has been. policy shift from price to income support under the direct benefit transfer (DBT) is deemed better as it would incentivise farmers as money is transferred to their bank accounts and bring in much needed efficiency in input use. Explain advantages such as
    • One may not be sure how much DBT to farmers would save governments’ resources but the amount is guaranteed to reach them which is not the case now. Farmers, without undergoing the hassles of authentication, can take independent decisions on the application of fertilisers.
    • Besides, it will help in reducing the transaction cost in creation of digital infrastructure, burden of retailers to maintain records, and errors that often appear using the Aadhaar card.
    • Such an income support measure would be financially sustainable in the long run besides fully compatible with the WTO provision of domestic support

Conclusion – give your view on the impact of DBT and way forward for reforms in farming sector.

CategoriesINSIGHTS