State three arguments in favour and against the subsidies

In favor of subsidy:-

1) Its very important for the marginal and landless farmers.

2) It convinces the farmers to adopt the modern techniques.

3) It reduces rural inequality and facilitate farmers to undertake risks.

Against subsidy:-

1) It can be enjoyed by the potential farmers leading in the mis-allocation of resources.

2) This my result in the manupulation of the market price of any product.

3) It should be provided initially, but it must be stopped at a later stage after accusing the performance.

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