The Impact of Agricultural Subsidies on Crop Diversification in India

Authors

Dr. Dev Raj Jhajhria

Abstract

This research paper examines the impact of agricultural subsidies on crop diversification in India, focusing on how these financial supports influence farmers' crop choices and the broader implications for agricultural sustainability and economic stability. While agricultural subsidies have been instrumental in stabilizing farmer incomes and ensuring food security, they have also led to a concentration on staple crops such as rice and wheat, limiting the adoption of diverse cropping systems. The paper identifies key challenges including economic incentives skewed towards cereals, infrastructural deficits, and policy biases that hinder diversification. It also highlights opportunities for promoting diversification through reforms in Minimum Support Price (MSP) policies, improvements in market infrastructure, and enhanced support for high-value and less-supported crops. By analysing current policies, infrastructural constraints, and market dynamics, the study provides a comprehensive overview of the barriers and prospects for achieving a more diversified agricultural sector. The recommendations include expanding MSP coverage, investing in cold storage and transportation, and implementing crop-specific insurance schemes. The research concludes that a multi-faceted approach involving policy adjustments, technological innovations, and infrastructural improvements is essential for fostering crop diversification and ensuring long-term agricultural sustainability in India.

Keywords

Agricultural subsidies, Crop diversification, Minimum Support Price (MSP), Agricultural policy, Economic incentives, Market infrastructure, Sustainable agriculture, India, Post-harvest losses, Agricultural sustainability

The Impact of Agricultural Subsidies on Crop Diversification in India. Dr. Dev Raj Jhajhria. 2017. IJIRCT, Volume 3, Issue 5. Pages 1-10. https://www.ijirct.org/viewPaper.php?paperId=2408033