1.

Question:
“With poverty levels at historic lows, do blanket subsidies on food and fertilisers still serve their intended purpose? Critically examine the need for reforms in India’s subsidy regime.”
(GS Paper 3 – Indian Economy, Inclusive Growth)

Model Answer Framework:

Introduction:

• Subsidies have historically played a crucial role in addressing poverty, ensuring food security, and supporting Indian farmers.

• However, extreme poverty has declined from 27.1% in 2011 to 5.3% in 2022, raising questions about the efficiency of continuing blanket subsidies.

Body:

Why Blanket Subsidies Are No Longer Efficient:

• Misalignment with current poverty levels: 800 million people continue to get subsidised food despite poverty being much lower.

• Leakages and wastage: Ghost beneficiaries, duplicate ration cards, diversion of fertilisers to industries or neighboring countries.

• Nutritional limitations: PDS focuses primarily on cereals (wheat, rice), neglecting protein and micronutrient needs.

• Fertiliser misuse: Overuse of urea due to price controls has led to soil degradation and nutrient imbalance.

• Fiscal burden: Combined food and fertiliser subsidy exceeds ₹3.5 lakh crore in FY26, crowding out capital investment.

Why Some Level of Subsidy is Still Needed:

• Vulnerable sections like landless labourers, tribal communities, and marginal farmers still rely on state support.

• Market prices for food and fertilisers are often volatile and unaffordable without intervention.

• Acts as a counter-cyclical measure during inflationary or drought periods.

Need for Smart Reforms:

• Targeting subsidies using SECC, PM-KISAN, Aadhaar, and land records.

• Shifting from in-kind transfers to digital food coupons or wallets.

• Fertiliser subsidy through DBT and promotion of balanced nutrient application.

• Encouraging bio-fertilisers and organic farming.

Conclusion:

• India must move towards targeted, nutrition-sensitive and environmentally sustainable subsidies, while ensuring no disruption to food security and farmer welfare.

2.

Question:
Discuss the challenges associated with India’s fertiliser subsidy policy and suggest reforms for ensuring soil health, farmer welfare, and fiscal prudence.
(GS Paper 3 – Agriculture, Subsidies, and Input Reforms)

Model Answer Framework:

Introduction:

• India is one of the largest fertiliser consumers, and the fertiliser subsidy is crucial for ensuring affordable input supply to farmers.

• Yet, the current system has created nutrient imbalance, soil degradation, and high fiscal burden.

Body:

Challenges in Current Fertiliser Subsidy Policy:

1. Urea Overuse: Cheap urea leads to excessive nitrogen use → soil acidity, nutrient depletion.

2. Neglect of P and K nutrients: Under-application affects balanced plant nutrition.

3. Environmental impact: Fertiliser runoff pollutes water bodies.

4. Market distortion: Controlled pricing discourages innovation and private investment.

5. Subsidy Inefficiency: Bulk of subsidy goes to manufacturers, not directly to farmers.

Reforms Needed:

• Implement DBT to farmers instead of companies to promote demand-based application.

• Fertiliser coupons or digital cards to give purchasing power to farmers.

• Promote Nutrient-Based Subsidy (NBS) for all fertilisers, including urea.

• Encourage Neem-coated urea, liquid biofertilisers, and natural farming practices.

• Invest in soil health cards and awareness on balanced application.

Conclusion:

• A balanced, targeted, and eco-friendly fertiliser policy is crucial for the next agricultural revolution in India that ensures productivity without compromising soil health and sustainability.

3.

Question:
Food security in India has been largely ensured through the Public Distribution System (PDS), but nutrition security remains a challenge. In this context, evaluate the limitations of the current PDS and suggest policy measures for reform.
(GS Paper 3 – Food Security and Nutrition)

Model Answer Framework:

Introduction:

• India’s PDS is the world’s largest food distribution network, ensuring calorie security.

• However, nutrition security (adequate proteins, vitamins, and minerals) remains unaddressed.

Body:

Limitations of PDS:

• Mono-diet focus: Over-dependence on wheat and rice; negligible supply of pulses, oil, etc.

• Leakages and corruption: Despite digitisation, many states report diversion or ghost beneficiaries.

• One-size-fits-all approach: Uniform subsidy across economic strata—hurts targeting.

• Storage and distribution inefficiencies: Poor warehousing, high food wastage.

Suggested Reforms:

• Shift to Digital Food Coupons or Wallets: Provide freedom to buy varied food items (milk, eggs, etc.)

• Revise PDS basket: Include fortified food, pulses, oil, salt, and region-specific items.

• Strengthen Targeted PDS (TPDS) by using Aadhaar, SECC, land ownership, and income data.

• Encourage community kitchens, decentralised procurement, and local nutrition models.

• Integrate Mid-Day Meal and ICDS schemes to ensure children’s nutrition needs.

Conclusion:

• India needs to evolve from food security to comprehensive nutrition security by modernising its subsidy delivery system, while protecting the most vulnerable.