WHAT ARE SCHEMES AND SUBSIDIES IN AGRICULTURE?
HOW ARE THEY MEANT TO HELP?
Schemes and subsidies
A subsidy is a benefit provided by the government to a person, company, ororganization.it may be direct (cash payment) or indirect (credit card payments).
Typically, it is financial support, that diminishes some hardship form to elevate the financial support to a person or company, or organization.
Different state governments or leading government in the country provides subsidies by introducing schemes with guidelines and eligibilities for making avail to people who are under crisis. to assist in economical crisis in the name of social welfare.
Schemes and subsidies are merely meant for social benefits.
Type of subsidies and schemes
Cash subsidies.
Food subsidy.
Procurement subsidy.
Education subsidy.
Export/Import subsidy.
Housing subsidy.
Regulatory subsidy.
Oil & fuel subsidy.
Tax subsidy.
Transport subsidy
Different schemes and subsidies in India
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)
Textile Industry Technology Upgradation Fund Scheme (TUFS)
Food Processing Industry Technology Upgrade/Establishment Scheme
Development of the leather sector – Leather Industry Development Plan
Subsidy for Upgrading Technology using Credit-Linked Capital (CLCSS)
Market Development Assistance Program
Technology and Quality Upgradation Support for MSMEs
Proposal for a Miniature Training and Tool Room Facility
Subsidy for NSIC Small Business Loans
Loan Subsidy for Cold Chain Businesses from the Government
For Coconut Producing Units Under the Technology Mission on Coconut (TMOC)
SAMPADA-scheme for agro marine produce and development of agro clusters.
Small Business Loans from the Government – Dairy Farming
Loan Subsidy for Small Businesses in the Horticulture Industry
ADVANTAGES AND DISADVANTAGES OF SCHEMES AND SUBSIDIES
Reducing the costs of necessary items while also providing them at a low price to a significant population segment.
Due to various issues, subsidies to industries intend to halt the industrial sectors decline. Therefore, it is an indirect means of assisting the country employment and industrial sectors.
Besides delivering trained labor to industry, subsidized education provides long-term advantages for the nation and society.
Subsidies contribute to the country battle against unemployment and poverty eradication.
DISADVANTAGES
Though one of the advantages of subsidies is the greater supply of goods, a shortage of supply can also occur. This is because lowered prices can lead to a sudden rise in demand that many producers may find very hard to meet. Ultimately, it can lead to the very high demand that causes an increase in prices.
Subsidies are usually effective and helpful. However, if the government were to make a report on its success in using subsidies, it is hard to quantify the success of subsidies.
How will the government raise funds to use for subsidizing industries?
Ofcourse, by imposing higher taxes. So, it is the general population and corporations who provide the means to enable the government to subsidize industries.