{"id":28039,"date":"2024-02-19T05:51:45","date_gmt":"2024-02-19T05:51:45","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=28039"},"modified":"2024-02-19T05:51:47","modified_gmt":"2024-02-19T05:51:47","slug":"upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/","title":{"rendered":"UPSC Mains &#8211; Examine the provision of both direct and indirect subsidies in India&#8217;s agricultural sector and analyze concerns raised by the World Trade Organization (WTO) regarding these subsidies. (10M, 150 words)"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png\" alt=\"\" class=\"wp-image-46428\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noopener\" title=\"\">Refer &amp; Earn NOW<\/a><\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d2f3feaddae\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2f3feaddae\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Introduction\" title=\"Introduction:\">Introduction:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Body\" title=\"Body:\">Body:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Direct_and_Indirect_Subsidies_in_Indias_Agricultural_Sector\" title=\"Direct and Indirect Subsidies in India&#8217;s Agricultural Sector:\">Direct and Indirect Subsidies in India&#8217;s Agricultural Sector:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Direct_Subsidies\" title=\"Direct Subsidies:\">Direct Subsidies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Indirect_Subsidies\" title=\"Indirect Subsidies:\">Indirect Subsidies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Concerns_Raised_by_WTO_on_Agricultural_Subsidies\" title=\"Concerns Raised by WTO on Agricultural Subsidies:\">Concerns Raised by WTO on Agricultural Subsidies:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Way_Forward\" title=\"Way Forward:\">Way Forward:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-examine-the-provision-of-both-direct-and-indirect-subsidies-in-indias-agricultural-sector-and-analyze-concerns-raised-by-the-world-trade-organization-wto-regarding-these-subsidies-1\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel \u2013&nbsp;here\">Visit our YouTube Channel \u2013&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Agricultural subsidies in India play a crucial role in supporting farmers, boosting income, reducing costs, and ensuring sustainability. Accounting for approximately 2% of India\u2019s GDP, these subsidies are instrumental in sustaining the agricultural sector, particularly in developing nations like India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body\"><\/span>Body: <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Direct_and_Indirect_Subsidies_in_Indias_Agricultural_Sector\"><\/span>Direct and Indirect Subsidies in India&#8217;s Agricultural Sector:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Direct_Subsidies\"><\/span>Direct Subsidies:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>Direct Benefit Transfers (DBT): Providing Rs. 6,000 annually to farmers through schemes like PM-KISAN.<\/li><li>Input Subsidies: Subsidies on fertilizers, exemplified by the Nutrient Based Subsidy (NBS) scheme.<\/li><li>Credit Subsidies: Schemes like the Kisan Credit Card (KCC) offer subsidized loans to farmers.<\/li><li><strong>Insurance Schemes: <\/strong>The Pradhan Mantri Fasal Bima Yojana (PMFBY) provides subsidized crop insurance.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indirect_Subsidies\"><\/span>Indirect Subsidies:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Irrigation Subsidies: <\/strong>Government schemes like the Accelerated Irrigation Benefits Program (AIBP).<\/li><li><strong>Power Subsidies:<\/strong> States offering free or subsidized electricity for agricultural purposes.<\/li><li><strong>Transport Subsidies:<\/strong> Various state schemes provide subsidies for transporting agricultural produce.<\/li><li><strong>Seed Subsidy: <\/strong>Financial assistance for distributing foundation\/certified seeds.<\/li><li><strong>Warehousing Subsidies:<\/strong> Schemes like the Warehousing Development and Regulatory Authority (WDRA).<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concerns_Raised_by_WTO_on_Agricultural_Subsidies\"><\/span>Concerns Raised by WTO on Agricultural Subsidies:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Amber Box Subsidies: <\/strong>The WTO questions subsidies in the Amber Box, such as fertilizer subsidies.<\/li><li><strong>Export Subsidies:<\/strong> Criticism from WTO members regarding India&#8217;s subsidies for agricultural exports.<\/li><li><strong>Domestic Support:<\/strong> WTO concerns about India&#8217;s Minimum Support Price (MSP) distorting trade.<\/li><li><strong>Public Stockholding: <\/strong>WTO contests India&#8217;s large food grain reserves policy by the Food Corporation of India (FCI).<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Way_Forward\"><\/span>Way Forward:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Balancing Subsidy Models:<\/strong> Transitioning to direct income support models like Universal Basic Income.<\/li><li><strong>Invest in Agricultural Research:<\/strong> Increasing Research and Development (R&amp;D) investment for sustainable crop varieties.<\/li><li><strong>Multi-Stakeholder Consultation: <\/strong>Establishing consultative committees for ongoing WTO compliance discussions.<\/li><li><strong>International Negotiations:<\/strong> Leveraging negotiation skills to safeguard agricultural interests in WTO forums.<\/li><li><strong>Capital Investment:<\/strong> Prioritizing decentralized infrastructure development over monetary subsidies.<\/li><li><strong>Public-Private Partnerships:<\/strong> Involving the private sector in agricultural infrastructure development.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion: <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Navigating global agricultural trade challenges requires India to negotiate effectively at WTO forums, considering its unique agricultural landscape. While striving for compliance, a judicious approach is crucial to protect the interests of the agricultural sector.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/free-resources-for-upsc?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Resources\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png\" alt=\"\" class=\"wp-image-42398 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel \u2013&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. 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