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

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The following question based on Agriculture Sector, Subsidy and Food Processing topic of indian economy mcq

Questions : Which one of the following is the main objective of the Farm Income Insurance Scheme?

(a) To provide income protection to the farmers by insuring market risks

(b) To provide income protection to the farmers by insuring production

(c) To provide income protection to the farmers by providing the insured seeds to farmers

(d) Both (a) and (b)

The correct answers to the above question in:

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 NAIS (explained in the section below) would be withdrawn for the crops covered under FIIS but would continue to be applicable for other crops.

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Read more agriculture sector subsidy and food processing Based Indian Economy Questions and Answers

Question : 1

Consider the following statements :

  1. Agriculture including allied activities accounted for about 55% employment in the country according to census 2011.
  2. The growth in agriculture and allied sectors is a necessary condition for inclusive growth in India.
Which of the statements given above is/are correct?

a) 2 only

b) 1 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: (c)

The growth in agriculture and allied sectors is a necessary condition for inclusive growth in India.

Agriculture including allied activities accounted for about 55% employment in the country according to census 2011.

Question : 2

Which of the following statements are true regarding “Farmer Producer Organization” (FPO):

  1. It is a legal entity formed by farmers, fishermen, rural artisans etc.
  2. NABARD is providing support for promotion of FPOs
Select the correct answer using the code given below:

a) Both (i) & (ii)

b) (i) only

c) (ii) only

d) Neither (i) nor (ii)

Answer: (a)

A Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A PO can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members.

The main aim of PO is to ensure better income for the producers through an organization of their own. Farmers Producer Organization (FPO) is one type of PO where the members are farmers.

Small Farmers’ Agribusiness Consortium (SFAC) and NABARD are providing support for the promotion of FPOs.

Question : 3

Consider the following statements :

  1. 20-point programme of the Indian Government includes the measures to uplift the landless workers.
  2. The 20-point programme was started by Janata Party Government in 1978.
Which of the statements given about is/are correct?

a) 2 only

b) 1 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: (b)

The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975.

The basic objective of the 20-Point Programme was to eradicate poverty and to improve the quality of life of the poor and the underprivileged population of the country including landless workers.

Question : 4

In India, agriculture income is calculated by

a) input method

b) expenditure method

c) output method

d) commodity flow method

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.

Question : 5

Which of the following has not been a component of the agriculture strategy that brought about the Green Revolution?

a) Guaranteed maximum prices

b) New agricultural technology

c) Greater intensity of crops

d) Package of inputs

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.

Question : 6

Consider the following statements

  1. Food for Work Programme was launched in India during the 10th Five Year Plan.
  2. The Planning commission in India is a constitutional body.
Which of the statements given above is/are correct?

a) Both 1 and 2

b) Only 1

c) Only 2

d) Neither 1 nor 2

Answer: (b)

According to The National Food for Work Programme, food subsidy should be better targeted through targeted public distribution system and specific programmes for the poor like Food for Work Programme.

The National Food for Work Programme was launched on 14 November 2004 in 150 of the most backward districts of India with the objective of generating supplementary wage employment. The Planning commission is not a constitutional body.

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