As per the OECD methodology, net support provided by Indian government to its farmers is negative for the year 2019. However, India’s expenditure on agriculture is consistently rising. What explains this conundrum? What are the concerns for India in the price support method of OECD? 10 marks

Mentor’s comment-

  • https://www.thehindu.com/opinion/lead/getting-it-wrong-on-indias-level-of-agricultural-support/article33629376.ece
  • In the intro, mention figures about the support provided to the farmers.
  • In the body, mention how the OECD methodology works by calculating the price difference in the domestic and international markets which is influenced by various factors exclusion of cost incurred for MSP etc . In the next part mention the concerns with methodology as India’s support could turn substantially positive in the future.
  • Conclude the need to raise the concerns with the methodology as it could pose challenges for India in the future.
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Siddharth Kumar
Siddharth Kumar
1 year ago

siddharthgrand01@gmail.com
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