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most farmers in India are very poor, they depend on the profit from the crops to do anything in their families. Example, marriage of their kdis, fixing their ho
by 0xFFFE 6y ago
most farmers in India are very poor, they depend on the profit from the crops to do anything in their families. Example, marriage of their kdis, fixing their house etc. Most of them have small patches of land and depend entirely on monsoon rains.
So if the rains fail in a given year OR the supply is too high in the market, farmers don't even break even.
So to protect farmers, Govt of India and the state govts provide lot of subsidies and incentives.
Here is a short list:
1) They don't pay taxes on their income.
2) Get loans at a very low interest rates. Most of the time loans are waived off.
3) They don't pay for the electricity used for farming.
4) They get subsidized prices on the seeds, fertilizers etc.