agriculture sector subsidy & food processing section 7 MCQ Questions & Answers Detailed Explanation

Answer: (d)

In July 2000, the Centre Government of India had announced the first-ever national agriculture policy.

The policy aimed at achieving a growth rate of over 4 per cent per annum by introducing ‘rainbow revolution’ in the next two decades so that the total GDP growth can be sustained at 6.5 per cent.

Import of High Yielding Varieties of crops from other countries was not included in the objective of this revolution.

Answer: (d)

Answer: (b)

In the given statements, India is meeting 85% of the urea fertilizer through indigenous production is correct.

However, we are deficient in phosphatic and potassic resources and around 90% is imported.

Answer: (c)

Committee to review the arrangements for institutional credit for agriculture and rural development (CRAFICARD) under the Chairmanship of Shri B. Sivaraman, recommended the formation of the National Bank for Agriculture and Rural Development (NABARD).

The bank came into existence on 12 July 1982. It is limited to the need for agriculture and rural finance.

Answer: (b)

Livestock contributes 25 per cent of gross value added in the agriculture sector and provides self-employment to about 21 million people.

Growth of livestock output averaged 4.8 per cent per annum during the Eleventh Plan recovering from an average of 3.6 per cent in the Ninth and the tenth Plans.

Answer: (c)

Commission for Agricultural Cost and Prices (CACP) takes into account several factors to recommend MSP to the Ministry of Agriculture and Farmers Welfare. Some of these factors are the cost of production and margin (profit) to farmers, Demand and supply, Price trends in the market both domestic and international, Intercrop price parity etc.

Among several criteria for recommending the MSP, the most important one is the cost of production of farmers and the margin/profit on it.

The cost of production of agricultural produce is calculated in three ways: A2, A2+FL and C2.

A2 costs basically cover all paid-out expenses, both in cash and in-kind, incurred by farmers on seeds, fertilizers, chemicals, hired labour, fuel, irrigation, etc.

A2+FL cover actual paid-out costs plus an imputed value of unpaid family labour.

C2 costs are more comprehensive, accounting for the rentals and interest forgone on owned land and fixed capital assets respectively, on top of A2+FL.

Finance Minister, while presenting the budget 2018-19 announced that, the Government will be offering MSP of 50 per cent over the cost of production (A2 + FL).

MSP is announced for 25 crops including sugarcane. The mandated crops are 14 for Kharif season viz. paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-inshell, soyabean, sunflower, sesamum, nigerseed and cotton; 6 rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed/mustard and safflower and two other commercial crops viz. jute and copra.

In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra respectively.