Change set

Pick exam & year, then Go.

Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q86 (UPPCS/2022) Economy › Agriculture & Rural Economy

Consider the following statements about farm subsidies in India:
1. The input subsidies in India, such as on fertilizers fall under indirect farm subsidies.
2. Reduction in power and irrigation bills offered to farmers fall under direct farm subsidies.
3. The agricultural provisions of the World Trade Organization (WTO) though allow direct farm subsidies, prohibit indirect subsidies.
4. All subsidies provided by the governments in India fall under the indirect subsidies.
Select the correct statements using the code given below.
Code :

Result
Your answer: —  Â·  Correct: B

Explanation

Farm subsidies in India are broadly classified as direct or indirect. Statement 1 is correct: Input subsidies like those on fertilizers are considered indirect because the government pays the subsidy to the manufacturing companies to keep the market price low for farmers. Statement 2 is correct: In the context of this specific question (from the UPPSC Prelims 2022), reductions in power and irrigation bills are classified as direct subsidies because the benefit is provided directly to the farmer's specific utility account or bill, rather than through a third-party manufacturer. Statement 3 is incorrect: The WTO's Agreement on Agriculture (AoA) does not prohibit indirect subsidies; it regulates them using a "Box" system (Green, Amber, Blue) based on their potential to distort trade. Statement 4 is incorrect: India provides both indirect (fertilizer, power) and direct subsidies (e.g., direct income support via PM-KISAN).

How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
0%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2020 · Q4 Relevance score: 5.16

With reference to chemical fertilizers in India, consider the following statements : 1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. 2. Ammonia, which is an input of urea, is produced from natural gas. 3. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries. Which of the statements given above is/are correct ?

IAS · 2002 · Q132 Relevance score: 4.64

With reference to power sector in India consider the following statements: 1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana. 2. 100 per cent Foreign Direct Investment in power is allowed without upper limit 3. The Union Ministry of Power has signed a Memoranda of Understanding with 14 states. Which of these statements is/are correct?

IAS · 2023 · Q4 Relevance score: 4.31

Consider the following statements : 1. India has more arable area than China. 2. The proportion of irrigated area is more in India as compared to China. 3. The average productivity per hectare in Indian agriculture is higher than that in China. How many of the above statements are correct?

IAS · 2023 · Q27 Relevance score: 4.17

Consider the following statements : 1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds. 2. Niger is cultivated as a Kharif crop. 3. Some tribal people in India use niger seed oil for cooking. How many of the above statements are correct?

IAS · 2004 · Q78 Relevance score: 4.10

Consider the following statements: India continues to be dependent on imports to meet the requirement of oilseeds in the country because: 1. Farmers prefer to grow food grains with highly remunerative support prices. 2. Most of the cultivation of oilseed crops continues to be dependent on rainfall. 3. Oils from the seeds of tree origin and rice bran have remained unexploited. 4. It is far cheaper to import oilseeds than to cultivate the oilseed crops. Which of the statements given above are correct?