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Question

Economics Question on Agriculture Economics

Which of the following is not true about subsidies in agriculture in India ?

A

They encourage adoption of technology

B

They make required input affordable to the farmers

C

It reduces the cost of production for the producers

D

It increases the cost of production for the producers

Answer

It increases the cost of production for the producers

Explanation

Solution

The correct option is (D) :It increases the cost of production for the producers.