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State PCS PYQPrelims 2022

UPPCS · Question 86

Consider the following statements about farm subsidies in India. 1. The input subsidies in India, such as on fertilizers, fall under indirect farm subsidies. 2. Reduction in power and irrigation bills offered to farmers falls under direct farm subsidies. 3. The agricultural provisions of the World Trade Organization (WTO), though allowing direct farm subsidies, prohibit indirect subsidies. 4. All subsidies provided by the governments in India fall under the indirect subsidies. Select the correct statements using the code given below.

  1. 3 and 4
  2. 1 and 2
  3. 1 and 4
  4. 2 and 3
Show answer & explanation

Answer: (C) 1 and 4

Explanation

Input subsidies such as fertilisers are indirect farm subsidies, and practically all Indian farm subsidies are classed as indirect (price-reducing) support. (As per the official UPPSC answer key.)