UPSC Economics Indian Economy / भारतीय अर्थव्यवस्था Question Bank Agriculture

  • question_answer
    What is a Green Box subsidy?
    I. These include direct payments to farmers to limit production and certain government assistance to encourage agriculture and rural development in developing countries
    II. These include government policies of Minimum support Prices (MSP) for agricultural products or any help directly related to production quantities (for eg. power, fertiliser, seeds, pesticides, irrigation etc.).
    III. These include amounts spent on research, disease control, infrastructure and food security

    A) I & III

    B) Only II

    C) Only III

    D) III & II

    Correct Answer: C

    Solution :

    Green Box subsidies include amounts spent on research, disease control, infrastructure and food security. These also include direct payments made to farmers such as income support that do not stimulate production. These are not considered trade distorting and are encouraged.


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