agriculture sector subsidy & food processing section 1 MCQ Questions & Answers Detailed Explanation

Answer: (a)

The Directorate of Marketing and Inspection (DMI) headed by the Agricultural Marketing Advisor, Department of Agriculture & Cooperation (DAC) implements agricultural marketing policies and programmes of the Government of India.

It undertakes:

• Standardisation,
• Grading and Quality Control of Agricultural and Allied produce,
• Market Research and Surveys along with other functions.

Answer: (c)

In India, agriculture, forestry and logging, fishing, mining and quarrying, registered manufacturing and construction units are included in category A. The output method is applied to category A.

The value added by this category is found by subtracting the value of raw materials and other inputs from the aggregate of commodity-wise output.

Expenditure Method-This method measure National income sum total of final expenditure incurred by household, business firm, Govt. & Foreigners.

Commodity flow method - This method is used to estimate the purchase of commodities by intermediate or final users. This method generally begins with an estimate of the total supply of a commodity available for domestic users.

Answer: (d)

The Central Government formulated the Farm Income Insurance Scheme (FIIS) during 2003-04. The two critical components of a farmer’s income are yield and price. FIIS targeted these two components through a single insurance policy so that the insured farmer could get a guaranteed income.

The scheme provided income protection to the farmers by insuring production and market risks. The insured farmers were ensured minimum guaranteed income (that is, average yield multiplied by the minimum support price). If the actual income was less than the guaranteed income, the insured would be compensated to the extent of the shortfall by the Agriculture Insurance Company of India.

Initially, the scheme would cover only wheat and rice and would be compulsory for farmers availing crop loans. NAIS (explained in the section below) would be withdrawn for the crops covered under FIIS but would continue to be applicable for other crops.

Answer: (d)

The Indian Institute of Sugarcane Research (acronym IISR) is an autonomous institute of higher learning, established under the umbrella of the Indian Council of Agricultural Research (ICAR) by the Ministry of Agriculture, Government of India for advanced research in sugar cane agriculture.

The institute is located on Raibareli Road, Dilkusha in Lucknow, Uttar Pradesh, India.

Answer: (d)

The importance of agriculture in the Indian Economy is indicated by its contribution to national income, industrial development and supply of foodgrains.

It contributes around 13.7% to GDP, supplies raw materials for the development of industries along with supplying food grains for livelihood.

Answer: (c)

Nutrient Based Subsidy (NBS) Policy on decontrolled Phosphatic and potassic fertilizer came into effect from 1st April 2010.

It has been decided to fix the subsidy on the nutrients:

• ‘N’ – Nitrogen,
• ‘P’ – Phosphorus,
• ‘K’ – Potash and
• ‘S’ – Sulphur contents.

India is meeting 85% of the urea fertilizer through indigenous production. However, we are deficient in phosphatic and potassic resources and around 90% is imported.