Consider the following statements 1 The subsidies are nothing but certain direc...........

Economic Affairs Agricultural Finance

Consider the following statements.

1. The subsidies are nothing but certain direct payments (i.e. direct set-aside payments) made to farmers by the government in the form of assistance programmes to encourage agriculture rural development etc.

2. At present there prescribed limits on spending on the blue box subsidies

3. The agricultural subsidies which cause minimal or no distortions to trade are put under the blue box

4. Green box basically includes all forms of government expenses which are not targeted at a particular product and all direct income support programmes to farmers which are not related to current levels of production or prices

Select the correct answer:-

1 and 2

2 and 3

3 and 4

1 and 4

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Explanation:

2nd and 3rd statements are incorrect.
At present there are no limits on spending on blue box subsidies. In the current negotiations , some countries want to keep the blue box as it is because they see it as a crucial means of moving away from distorting amber box subsidies without causing too much hardship. others wanted to set limits or reduction commitments, some advocating moving these supports into the amber box.