agriculture sector subsidy & food processing section 5 MCQ Questions & Answers Detailed Explanation

Answer: (c)

GDP has steadily increased in the last 10 years but agriculture growth has turned negative once in 2014-15.

Refer to the Trends.

Answer: (a)

The Price Stabilization Fund (PSF) was set up in 2014-15 under the Department of Agriculture, Cooperation & Famers Welfare (DAC&FW) to help regulate the price volatility of important agri-horticultural commodities like onion, potatoes and pulses were also added subsequently.

The PSF scheme was transferred from DAC&FW to the Department of Consumer Affairs (DOCA) w.e.f. 1st April 2016.

The scheme provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility and discourage hoarding and unscrupulous speculation. For building such stock, the scheme promotes direct purchase from farmers/farmers’ associations at farm gate/Mandi.

The PSF is utilized for granting interest-free advance of working capital to Central Agencies like NAFED (National Agricultural Cooperative Marketing Federation of India Ltd.) and SFAC (Small Farmers Agri-business Consortium), State/UT Governments/Agencies to undertake market intervention operations.

Apart from domestic procurement from farmers/wholesale mandis, import may also be undertaken with support from the Fund.

Answer: (d)

Agricultural income tax is levied on the income from Agriculture. At present agriculture is subjected to two direct taxes and they are agricultural Income tax and Land Tax.

They are levied by the state governments. Not all states levy agricultural income tax.

Answer: (a)

The second Green Revolution seeks to minimize post-harvest wastage, improve storage and help Indian farmers meet the phytosanitary conditions so that they can participate productively in the global agricultural trade.

The first Green Revolution was assisted by research undertaken by public institutions such as Universities.

However, the second Green Revolution (appropriately called Gene Revolution, because of the predominance of Biotechnology) will be directed by proprietary research and governed by Intellectual Property Rights.

Answer: (b)

Procurement price is the price at which government purchases the crop after harvesting, while MSP is the minimum price at which government declares it will buy the crop.

Since 1968-69, the MSP is usually the procurement price.

Answer: (a)

Co-operative joint farming, where the farmers pool their land and reap the economies of scale, although the ownership continues to remain with the individual farmer.