Subvenciones Agrícolas en la India Un Acto de Equilibrio Crucial

The paper examines India's agricultural subsidy regime, highlighting the role of the Minimum Support Price (MSP) and the Public Distribution System (PDS) in ensuring food security for millions. It details the growth of input subsidies for fertilizers, electricity, and irrigation, which reached USD 48 billion in 2022-2023. While acknowledging criticisms regarding market distortion, budget pressure, and environmental degradation, the author argues that these subsidies are vital for small farmers and rural stability, especially given the pressures of global trade and the limitations of current banking infrastructure for direct income transfers.

• The Minimum Support Price (MSP) and Public Distribution System (PDS) are critical for food security, with the PDS covering 650 million beneficiaries across 26 states and union territories; during the COVID-19 pandemic, approximately 80% of the Indian population was eligible for subsidized food.
• Price support has been most effective for rice and wheat, with 37% and 17% of production acquired at MSP in the 2021/22 marketing seasons respectively, though it has been less successful for oilseeds and pulses.
• Input subsidies have seen significant growth, rising from USD 25 billion in 2011 to USD 48 billion between 2022 and 2023, with fertilizers (45.6%) and electricity (30%) absorbing the largest shares.
• Critics argue that Indian agricultural subsidies cause budget pressure, discourage private investment in storage and markets, and lead to environmental issues such as the increase of rice and wheat monocultures and the blocking of green technology innovations.
• India's subsidies are defended as comparable to those in developed nations when measured as a percentage of agricultural production; in 2018, Article 6 subsidies represented 8.11% of production, similar to levels in the US (7.05%), Japan (9.7%), and Switzerland (12.85%).
• Direct income transfers are proposed as a more efficient alternative to price supports and input subsidies, but their implementation is hindered by weak banking infrastructure, corruption, and difficulties in identifying beneficiaries like tenant farmers and women farmers.
• International trade factors, including US cotton subsidies and Free Trade Agreements (FTAs) with Southeast Asian countries, create economic pressure that makes it politically difficult to remove MSP and input subsidies.

APA

Sengupta, R. (2024). Subvenciones Agrícolas en la India Un Acto de Equilibrio Crucial. International Institute for Sustainable Development. https://www.iisd.org/es/articles/policy-analysis/agricultural-subsidies-india

Chicago

Sengupta, Ranja. Subvenciones Agrícolas en la India Un Acto de Equilibrio Crucial. International Institute for Sustainable Development, 2024. https://www.iisd.org/es/articles/policy-analysis/agricultural-subsidies-india.

Wikipedia

{{cite report |last1=Sengupta |first1=Ranja |title=Subvenciones Agrícolas en la India Un Acto de Equilibrio Crucial |publisher=International Institute for Sustainable Development |date=December 2024 |url=https://www.iisd.org/es/articles/policy-analysis/agricultural-subsidies-india |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sengupta2024subvenciones, author = {Sengupta, Ranja}, title = {{Subvenciones Agrícolas en la India Un Acto de Equilibrio Crucial}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = dec, url = {https://www.iisd.org/es/articles/policy-analysis/agricultural-subsidies-india}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }