agriculture sector subsidy & food processing section 7 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 : Consider the following statements :
  1. Indian Government announces the minimum support price for wheat rice and sugarcane in a year.
  2. The common paddy has a higher minimum support price than the paddy Grade-A.
Which of the statements given above is/are correct?

(a) 2 only

(b) Both 1 and 2

(c) 1 only

(d) Neither 1 nor 2

The correct answers to the above question in:

Answer: (d)

Regarding minimum support price neither of the statements given above is correct.

In order to help the farmers in getting remunerative prices for their produce with a view to encourage higher investment and also to increase production and productivity of a commodity, the Government of India declares Minimum Support Price (MSPs) for 25 notified agricultural commodities for each Kharif and Rabi crop.

Moreover, the common paddy does not have a higher minimum support price than the paddy Grade-A.

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

Question : 1

When were Kisan Call Centres established?

a) March 2002

b) March 2004

c) July 2000

d) January 2004

Answer: (d)

On January 21, 2004, the Department of Agriculture, Cooperation and Farmer’s welfare, Ministry of Agriculture, Govt. of India established Kisan Call Centers across the country to deliver extension services to the farming community.

The aim is to respond in the local language to the problems faced by farmers. A farmer from any part of the sale can contact the Kisan call centre counter by dialling toll-free no. 1551 or 1800-180-1551 and present their problems related to farming.

Question : 2

Consider the following statements :

  1. Central warehousing corporation is responsible for the construction and running of the godowns for storage of agriculture products.
  2. Central warehousing corporation of India was established in 1957.
Which of the statements given above is/are correct?

a) Both 1 and 2

b) 1 only

c) 2 only

d) Neither 1 nor 2

Answer: (a)

CWC is a Warehousing Agency in India, established in 1957. It provides logistics support to the agricultural sector.

CWC is operating 464 Warehouses across the country with a storage capacity of 10.54 million tonnes providing warehousing services for a wide range of products ranging from agricultural produce to sophisticated industrial products.

Question : 3

Indian agriculture is typically

a) Land surplus, labour surplus economy

b) Land surplus, labour scare economy

c) Land scare, labour surplus economy

d) Land scare, labour scare economy

Answer: (c)

Indian agriculture is typically characterised as land scare, labour surplus economy. India has high man/land ratio. There are large number of skilled labours but there is absence of land or capital.

Question : 4

Consider the following statements :

  1. The farm power availability in India is much lower than that of Korea.
  2. India is meeting 80% of its urea requirement through indigenous production.
Which of the statements given above is/are correct?

a) Both 1 and 2

b) 1 only

c) 2 only

d) Neither 1 nor 2

Answer: (a)

The farm power availability in India is much lower than that of Korea. 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.

Question : 5

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) 1 and 2 both

b) 1 only

c) 2 only

d) None

Answer: (a)

The growth in agriculture and allied sectors is a necessary condition for inclusive growth in India. Agriculture including allied activities accounted for about 55% of employment in the country according to Census 2011.

Question : 6

In India, which of the following has the highest share in the disbursement of credit to agriculture and allied activities?

a) Co-operative Banks

b) Commercial Banks

c) Regional Rural Banks

d) Microfinance Institutions

Answer: (b)

In India, commercial banks have the highest share in the disbursement of credit to agriculture and allied activities.The commercial banks disburse around 60% credit followed by cooperative banks around 30% and RRB and others.

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