Legal Instruments and Agricultural Subsidy
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The findings of the present research reveals that in any economic parlance a regime without subsidies will be an ideal one, provided it is world over. Developed countries, by increasing their farm subsidies immensely are distorting global prices. The developing countries cannot race with the developed ones in rendering high levels of subsidies. The only alternative left for them is to bail out their farmers by offering meagre subsidies. The call for targeting of subsidies is justified, but not its total elimination in the context. The main objective of the present thesis has been to find out w...
The findings of the present research reveals that in any economic parlance a regime without subsidies will be an ideal one, provided it is world over. Developed countries, by increasing their farm subsidies immensely are distorting global prices. The developing countries cannot race with the developed ones in rendering high levels of subsidies. The only alternative left for them is to bail out their farmers by offering meagre subsidies. The call for targeting of subsidies is justified, but not its total elimination in the context. The main objective of the present thesis has been to find out whether market development shall be an answer and counter point to subsidy dependence? Because subsidies in India as far as staple crops, rice and wheat is concerned, are creating dependencies. The most significant of the of policy imperatives suggested by the present research is that the money spent on subsidies should be diverted to productive investment for greater benefits and returns andthe most viable of which is investing in creating perpetual and long term agricultural produce market. This is necessary for Indian farm products to become price competitive in the global market.
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