Why agricultural value chains fail – Part (3): The curse of the subsidy
During the last stages of the fertiliser subsidy, farmers were on average using around 200 Kg of fertiliser per acre, which is way beyond the recommended levels
During the last stages of the fertiliser subsidy, farmers were on average using around 200 Kg of fertiliser per acre, which is way beyond the recommended levels
Thursday, 15 December 2016
Agricultural subsidies are common and popular interventions by governments. They are sometimes considered as essential economic tools. However, there are plenty of examples showing how they have miserably failed causing economic, social and environmental negative externalities.
This led to question whether the real intentions behind the subsidy are adequately justified. There is also evidence to suggest that the policy makers might have got it wrong. One might therefore argue that subsides, as an economic instrument might not be an economic instrument to begin with. May be it is a political instrument, disguised as an economic one.
This led to question whether the real intentions behind the subsidy are adequately justified. There is also evidence to suggest that the policy makers might have got it wrong. One might therefore argue that subsides, as an economic instrument might not be an economic instrument to begin with. May be it is a political instrument, disguised as an economic one.
Why agricultural value chains fail.docx by Thavam Ratna on Scribd
