Farm Subsidies and Deforestation: World Bank Warning
Why in the news
World Bank environment director Valerie Hickey warned that much farm support, fertiliser aid in particular, harms nature and is inefficient.
Key facts
- Subsidies worldwide: about $2 billion per day; 14% directly linked to deforestation.
- Many are nature-negative, damaging the environment instead of raising sustainable output.
- India allocated ₹1.71 trillion for fertiliser subsidy in FY27 to cushion farmers from global price shocks.
| Change | Effect |
|---|---|
| 10% more fertiliser | 2% productivity gain |
| 10% more fertiliser | 3% rise in respiratory illness |
Policy shift
- The issue is subsidy design, not the amount spent.
- Shift from inputs such as fertilisers and chemicals to research, innovation and sustainable farming.
- India also backs fertiliser-free natural farming; the National Mission on Natural Farming began in 2024.
Exam angle
- Speaker: Valerie Hickey, World Bank.
- Figures: $2 billion a day, 14%, 10%/2%/3%, ₹1.71 trillion.