Which is the largest subsidy in India?

Detailed Solution. The Correct Answer is Option (4) i.e. Food Subsidy. The Food Subsidy gets the maximum share in the total subsidy given by the Central Government of India. For 2020-21 fiscal, Rs 1,15,569.68 crore fund has been allocated for supplying subsidized foodgrains through the PDS and welfare schemes.

What is food subsidy in India?

The food subsidy is both a consumer and a producer subsidy. It is used to buy grains from farmers at a price that makes farming remunerative and then sell the grain to poor households at lower prices, or in some cases, for free. Some part of the subsidy is also spent on maintenance and other administrative costs.

How much is government subsidy in India?

According to documents, in its revised budget estimate for 2021-22, the government pegged total subsidies at ₹4,33,108 crore. This is higher than the budget estimate of ₹3,69 lakh crore for the current fiscal .

How food subsidy is calculated?

[21] Food subsidy is calculated as the difference between the economic cost of procuring food grains, and their CIP.

What is the maximum government subsidy?

The correct answer is Rs, 1,00,000.

How much subsidy India farmers get?

The government of India provides a variety of subsidies, including fertilizer, irrigation, equipment, finance, seed, and export, among others. Farm subsidies form about 2% of India’s GDP & the total subsidy to farmers form about 21% of their farm income.

What is fertilizer subsidy?

Fertilizer Subsidy Division deals with payment of cost of imported urea of OMIFCO/Canalizing agencies, recovery of Pool issue price of urea from Handling Agencies, Ocean freight payments to vessel owners, subsidy disbursement in respect of Imported Urea, Indigenous & Imported P & K fertilizers, SSP and City Compost …

Why is food subsidized?

“Subsidized food commodities are foods made from federally funded crops to ensure the American population has an adequate supply of food, thus they tend to be non-perishable, or storable, e.g., corn, wheat, rice, to reduce the risk of spoiling.”

What is FCI cost?

Accounting Year-Wise opening Stock adjusted weighted Economic Cost and Acquisition Cost (Rs./qtl.)

Year Status Annual rate of Buffer Carring Cost
2017-18 Audited 512.30
2018-19 Unaudited 493.25
2019-20 Revised Estimate 560.56
2020-21 Budgeted Estimated 540.30

What is MSME subsidy?

This subsidy is provided to MSMEs for induction of well established and improved technologies in specified sub-sectors or products approved under the scheme. This scheme provides an upfront subsidy of 15% on institutional credit up to Rs. 1 crore (i.e. a subsidy cap of Rs.

What is the maximum subsidy under PMAY?

PMAY – CLSS TABULAR GUIDELINES

Criteria Existing Instructions(CLSS – EWS +LIG) Revised Instructions (CLSS – EWS +LIG)
Max Loan Amt for Subsidy Upto 6 lakhs Upto 6 lakhs
Subsidy % 6.50% 6.50%
Subsidy Amount Rs. 2.20 lakhs Rs. 2.67 lakhs
NPV 9% 9%

What is amber box subsidy?

Amber box subsidies are those subsidies which distort the international trade by making products of a particular country cheaper in comparison to same product in another country. Examples of such subsidies include input subsidies such as electricity, seeds, fertilizers, irrigation, minimum support prices etc.