← All questionsGS3 · 2017 · Agriculture ·Subsidies, Cropping Pattern and Small Farmers
QUESTION 15
GS3
15 marks

How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers?

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11 min
250 words

What the examiner wants

Explain how subsidies shape cropping and farm economics, and the value of insurance, MSP and processing for small farmers.

How + WhatAnswer exactly what the question asks.

Demand-wise check

  1. 1Effects: free power and fertiliser subsidies favour water-intensive paddy; urea bias skews NPK; MSP-procurement focus on rice and wheat reduces crop diversity; soil and water damage; benefits skewed to large farmers≈50 words
  2. 2Crop insurance (PMFBY): low premium, protects against yield loss, but claim delays≈50 words
  3. 3MSP: price floor, but limited reach to small farmers and few crops≈50 words
  4. 4Food processing: value addition, less wastage, local jobs≈50 words

Open in about 30 words and close in about 30.

Answer plan

Subsidy typesEffects on pattern, diversity, farm economySignificance of insurance, MSP, processingConclusion

Where marks usually go

  • Only defending subsidies
  • Missing one of the three instruments in part two

Draw this

  • Table: subsidy → effect on cropping → effect on farmer

Value addition

  • CommitteeShanta Kumar Committee (2015) found only about 6% of farmers sell at MSP.HLC on FCI restructuring, 2015
  • SchemePMFBY (2016) premiums: 2% kharif, 1.5% rabi, 5% commercial and horticulture crops.Ministry of Agriculture

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