Economic Impact of Agricultural Subsidies on Farm Economy in Karnataka

This study has analysed the growth, distribution and impact of agricultural subsidies in north-east Karnataka from 1980–81 to 2008–09 and has suggested the modes of giving these subsidies to the farmers. The per cent change over the input subsidy distribution in north-eastern Karnataka region in pigeon pea and bajra has shown a positive increase, but jowar and sunflower have depicted a negative change over the years. The highest amount distribution in the Bellary district was found in the year 2011–12 ( 124.22 lakh) and the highest incentive distribution was found as 2700 lakh; however, the per cent change was 8 per cent. A significant difference has been observed between the average annual income of farmers availing output subsidy and not availing any subsidy. The paper has put some suggestions also to increase the reach of farmers to agricultural subsidies for a better impact.