Subsidy can be easily defined as any
kind of help by the state to any industry or business so that prices of a
commodity or service can be kept low. Similarly agricultural subsidy is the
help by the government to farmers and other agribusinesses to manage
the chain of production and consumption. As agriculture is important for the
lives of people as nobody can survive without food. Every country of the world tries
its best to provide maximum subsidies to the farmers and related industries so
that they can have maximum production not only for themselves but also for
their country and rest of the world.
Statistics of Agricultural Subsidies:
China gives the maximum support to the
farmers than any other country. According to a report of Organization for
Economic Co-operation and Development (OECD) in 2012 China paid out $165
billion in direct and indirect agricultural subsidies while Japan at $65
billion and America at just over $30 billion. In India the aid of Government in
agricultural sector ranks at third among all other sectors and pulls the
highest amount of (Rs 2 lakh crore). In European Union (EU) a new
financial mechanism was adopted to create a reserve for agricultural crises. Budget’s
direct aids amounting to €286 million. Relief provided by Pakistani Government
to the farmers is estimated at 4915 billion rupees compared to revised
figures of 4332 billion for previous year.
Importance of Agricultural Subsidies:
Farm subsidies will help the farmers
to produce cheap food thus lowering the prices of food commodities nationally
and internationally.
It also helps the farmers to use the
latest technologies to produce quality food that will result in the production
of quality and nutritious food.
Cross border movements to export the
agricultural products is enhanced as a result of aiding the farmers in their
production.
To keep the World’s food chain active,
it is necessary to help the feeders of the World who are non-other than
farmers.
