Agricultural Contribution and Importance in India
While agriculture contributes only 16% to India’s GDP, this figure doesn't capture the full impact on social stability and potential cultural upheaval. Approximately 250 million people are directly dependent on farming, with 700 million connected to the rural economy, highlighting its significance beyond mere economics.
Protection as a Survival Mechanism
- Protecting the farm sector is crucial for maintaining economic, social, political, and cultural stability.
- The debate on agricultural subsidies and tariffs centers on the Minimum Support Price (MSP).
Comparison: US and EU Agricultural Policies
- In the US:
- Programs like ERP, PLC, ARC, and DMC provide direct payments if prices fall below a set level.
- Focus on large farms and market stabilization.
- Subsidies amount to about $20 billion annually.
- In the EU:
- The Common Agricultural Policy (CAP) offers direct payments if prices fall below intervention levels.
- A shift towards supporting small farmers with environmental and biodiversity goals.
- Subsidies total approximately $50 billion annually.
Challenges and Considerations for India
- Transitioning Indian farmers to US and EU systems could create bureaucratic challenges.
- India focuses on small farmers with transparent MSP, contrasting with hidden subsidies in the US and EU.
- The need for equitable and development-centered international agreements is emphasized.
