agriculture sector subsidy & food processing section 2 MCQ Questions & Answers Detailed Explanation

Answer: (c)

Rearing of animals and cultivation of crops together is the chief characteristic of mixed farming.

Answer: (b)

The area under foodgrains has declined in the last two decades and the average farm size in the country is very small and declining over the years.

Answer: (b)

Statement 1 lists all the main and primary sources of agricultural credit institutions exclusively for farmers.

Answer: (a)

Factors like the size of holdings, the pattern of ownership, the method of inheritance and security of tenure have a definite impact on investment in agriculture.

Answer: (d)

Agriculture and allied sectors are considered to be the mainstay of the Indian economy.

They are the important source of raw material and demand for many industrial products, particularly fertilizers, pesticides, agricultural implements and a variety of consumer goods. They contribute nearly 22 per cent of the Gross Domestic Product (GDP) of India.

About 65-70 per cent of the population is dependent on agriculture for their livelihood.

The ‘Agriculture and allied’ industry is further divided into several segments, namely:

1. horticulture and its allied sectors (including fruits and vegetables, flowers, plantation crops, spices, aromatic and medicinal plants);
2. fisheries sector;
3. animal husbandry and livestock;
4. and sericulture.

India’s varied agro-climatic conditions are highly favourable for the growth of the large number of horticultural crops, which occupy around 10 per cent of the gross cropped area of the country producing 160.75 million tonnes.

However, food processing does not fall under this category.

Answer: (d)

Co-operative societies, Commercial Banks and Regional Rural Banks are sources of agriculture finance in India.

They provide finance under various schemes run by central government and state governments to purchase seeds, implements, fertilizer, pesticides etc.