Which of the following constitutes subsidy in agricultural enterprise?
Answer Details
A subsidy in agricultural enterprise is a financial benefit provided by the government to support the agricultural sector. It can take many forms, but one example is the supply of fertilizers to farmers at a reduced price. In this scenario, the government reduces the cost of fertilizers for farmers by providing subsidies, making it more affordable for them to purchase the necessary inputs to grow their crops. This helps to improve the overall productivity and competitiveness of the agricultural sector, and can have a positive impact on the lives of farmers and the local economy.
The other options listed (borrowing of money from a thrift society, provision of money to farmers through commercial banks, and provision of services through cooperative societies) are not considered subsidies in the strictest sense. However, they may still provide valuable support to farmers and the agricultural sector in other ways.