Question 56
Agricultural FinanceWhich of the following constitutes subsidy in agricultural enterprise?
- A.Supply of fertilizer to farmers at reduced price
- B.Borrowing of money from a thrift society
- C.Provision of money to farmers through commercial banks
- D.Provision of services through co-operative societies.
Show the answer and explanation
Answer: A (Supply of fertilizer to farmers at reduced price)
Explanation
Selling inputs below cost is a subsidy.