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Priyanka ChoudharyAIR 79· 2021

Question 3Critically discussGS3GS3

India's price intervention policies to support its agricultural sector not only create a broken system but also complicate matters related to international trade rules. Critically discuss.

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Main Body

Ordian (2%) population is engaged in agriculture while it created only 16% contribution to gdp. This mismatch is handled by price intervention policies of government, such as MSP, market intervention scheme MIS, public distribution system PDS. Price intervention schemes - 1. Domestic issues create broken system - 1.1. Monopoly of some states and regional leads to disparities - lease & wheat are promoted which are water-intensive rnc and under nutritiened security 1.1.1. 5 states contribute to wheat PDS procurement. 1.2. Not enough embrace on cash crops, horticulture not part of MSP. 1.3. Distorted import - export system, so no MSP from already leading to import bill. 2. International trade rules issues - 2.1. Against 'agreement on agriculture' of WTO where these subsidies over counted under Amber box. 2.2. Creates system of subsidies (ceftus much fatticle) leading to SFs rules violation & import affected.

1.2. Not enough embrace on cash crops, horticulture not part of MSP. 1.3. Distorted import - export system, so no MSP from already leading to import bill. 2. International trade rules issues - 2.1. Against 'agreement on agriculture' of WTO where these subsidies over counted under Amber box. 2.2. Creates system of subsidies (ceftus much fatticle) leading to SFs rules violation & import affected. India is a rural economy dependent on agriculture, price intervention is necessary for giving reeve prices to reeve farmers. TOTAL scheme is right step here.

— Priyanka Choudhary · AIR 79

232 words1 paragraphs

Conclusion

India is a rural economy dependent on agriculture, price intervention is necessary for giving relief prices to farmer. TOTAL scheme is right step here.

24 words

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Topper

Priyanka Choudhary

AIR 792021

Subject & Paper

GS3GS3

Topic

Agriculture and Food Security

Agricultural Pricing Policy and Subsidies

Price Intervention Schemes

Writing Stats

256

Total words

1

Paragraphs

analytical

Tone