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Farm Subsidies and Deforestation: World Bank Warning

2 March 20261 min read
AGRICULTURE & RURALFarm Subsidies andDeforestation: WorldBank Warning2 March 2026safalsetu.com

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.
ChangeEffect
10% more fertiliser2% productivity gain
10% more fertiliser3% 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.

Test yourself

1. According to the World Bank, roughly what share of global agricultural subsidies is directly linked to deforestation?

The notes put the deforestation-linked share at about 14%.

2. A 10% rise in fertiliser use was estimated to raise productivity by how much, as per the World Bank remarks?

Only a 2% productivity gain, with a 3% rise in respiratory illness.

3. How much did India allocate for fertiliser subsidies in FY27 according to these notes?

The allocation stated is ₹1.71 trillion.

This topic is part of Daily Current Affairs 1 & 2 March 2026 (23 topics).

All topics of the dayDay quizMarch 2026

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