Solution

Whenever a new technology is being introduced, people are hesitant at first to try it out. The most common thinking is if someone invests in new technology and it backfires or doesn’t give the desired results, it will be loss for the investor. Therefore subsidies were introduced. Economists believe that a technology when found to be profitable should not be subsidised. Subsidies meant for farmers will also benefit the fertilizer industry and it will be benefitting those farmers who are from more prosperous regions. Government bears the burden by providing such subsidies. The proper way to provide subsidy is to determine which farmers are really in need of subsidy through a proper verification system. It will ensure the needy gets the subsidy and the government doesn’t have to bear large expenses.