Topic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
4) Subsidies are often criticised that instead of offering solutions to the problems they themselves become a problem. In the light of the above statement discuss the issues surrounding the subsidy system in India. (250 words)
Why this question:
The question is based on the theme of Subsidies.
Key demand of the question:
The answer must evaluate in what way subsidies often fail to achieve their actual intent and end up becoming a problem in themselves.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Begin with brief on what you understand by subsidies.
Discussion should include the following:
Paint a picture of the history of subsidies as a concept that evolved in India since independence and that the basic objective of the public distribution system in India is to provide essential consumer goods at cheap and subsidized prices to the consumers so as to insulate them from the impact of rising prices of these commodities and maintain the minimum nutritional status of our population.
Explain the associated challenges, advantages and disadvantages.
Discuss in detail the problems of public distribution system in India.
Conclude with way can be done to overcome the issue and make the concept work .