Legal Instruments and Agricultural Subsidy

The findings of the present research
reveals that in any economic parlance a regime without
subsidies will be an ideal one, provided it is world over.
Developed countries, by increasing their farm subsidies
immensely are distorting global prices. The developing
countries cannot race with the developed ones in rendering
high levels of subsidies. The only alternative left for them
is to bail out their farmers by offering meagre subsidies.
The call for targeting of subsidies is justified, but not
its total elimination in the context. The main objective of
the present thesis has been to find out whether market
development shall be an answer and counter point to subsidy
dependence? Because subsidies in India as far as staple
crops, rice and wheat is concerned, are creating
dependencies. The most significant of the of policy
imperatives suggested by the present research is that the
money spent on subsidies should be diverted to productive
investment for greater benefits and returns and the most
viable of which is investing in creating perpetual and long
term agricultural produce market. This is necessary for
Indian farm products to become price competitive in the
global market.