agriculture sector subsidy & food processing section 8 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 : What is a Blue Box subsidy?
  1. These include direct payments to farmers to limit production and certain government assistance to encourage agriculture and rural development in developing countries
  2. These include government policies of Minimum Support Prices (MSP) for agricultural products or any help directly related to production quantities (for eg. power, fertiliser, seeds, pesticides, irrigation etc.).
  3. These include amounts spent on research, disease control, infrastructure and food security

(a) Only III

(b) I & III

(c) Only I

(d) III & II

The correct answers to the above question in:

Answer: (c)

Blue Box subsidies include direct payments to farmers to limit production and certain government assistance to encourage agriculture and rural development in developing countries.

Blue Box subsidies are seen as being trade-distorting.

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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. In India, more than 85% agriculture workers are mainly casual labourers.
  2. Agriculture labourers in India are mainly dominated by the backward classes.
Which of the statements given above is/are correct?

a) Both 1 and 2

b) 1 only

c) 2 only

d) Netiher 1 nor 2

Answer: (a)

Agriculture labourers in India are mainly dominated by the backward classes and more than 85% agriculture workers are mainly casual labourers.

Question : 2

Which one of the following states is the first state to impose Agriculture Income Tax in India?

a) Uttar Pradesh

b) West Bengal

c) Madhya Pradesh

d) Bihar

Answer: (d)

Bihar is the first state to impose agricultural income tax in India. 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. Bihar was the first state in India to levy a tax on agricultural income in 1938.

Question : 3

Which of the following statements are true regarding the SAMPADA scheme?

  1. It is implemented by Ministry of Agriculture
  2. It is implemented by Ministry of consumer affairs, food and public distribution
  3. It will focus on agro-marine processing
Select the correct answer using the code given below:

a) (ii) & (iii) only

b) (i) only

c) (i) & (iii) only

d) (iii) only

Answer: (d)

SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-processing clusters) is a Central Sector Scheme with an allocation of Rs. 6000 crore for the period 2016-20.

The objective of the scheme is to supplement agriculture, modernize processing (of marine and agri-produce) and decrease agri-waste.

SAMPADA is an umbrella scheme incorporating ongoing schemes of the government like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation of Food Processing & Preservation Capacities.

The SAMPADA is a comprehensive package to give a renewed thrust to the food processing sector in the country. It aims at the development of modern infrastructure to encourage entrepreneurs to set up food processing units based on a cluster approach, provide effective and seamless backward and forward integration for the processed food industry by plugging gaps in the supply chain and creation of processing and preservation capacities and modernization/ expansion of existing food processing units.

The objective of the SAMPADA scheme is to supplement agriculture, modernize processing (of marine and agri-produce) and decrease agri-waste. It is implemented by the Ministry of Food Processing Industries.

Question : 4

NABARD was established in the

a) Fifth Five Year Plan

b) Sixth Five Year Plan

c) Fourth Five Year Plan

d) Eighth Five Year Plan

Answer: (b)

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters based in Mumbai.

It was established on 12 July 1982 in the sixth five-year plan by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non-farm sector.

Question : 5

Consider the following statements regarding ‘Operation Greens’:

  1. It is under the Ministry of Food Processing Industries
  2. NAFED will be the nodal agency to implement it
  3. It focuses on building post-harvest processing facilities and agri logistics
Select the correct answer using the code given below:

a) (i) & (iii) only

b) (i) & (ii) only

c) (ii) & (iii) only

d) All of the above

Answer: (d)

In the budget speech of Union Budget 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, with an outlay of Rs.500 crore to promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities and professional management.

Accordingly, the Ministry of Food Processing Industries (MoFPI) has formulated a scheme for the integrated development of the Tomato, Onion and Potato (TOP) value chain.

The scheme will have a two-pronged strategy of Price stabilization measures (for the short term) and Integrated value chain development projects (for the long term).

Short term Price Stabilization Measures:

  1. NAFED will be the Nodal Agency to implement price stabilization measures. MoFPI will provide 50% of the subsidy on the following two components:
  2. Transportation of Tomato Onion Potato (TOP) Crops from production to storage
  3. The hiring of appropriate storage facilities for TOP Crops

Long Term Integrated value chain development projects

  1. Capacity Building of FPOs & their consortium
  2. Quality production
  3. Post-harvest processing facilities
  4. Agri-Logistics
  5. Marketing / Consumption Points
  6. Creation & Management of e-platform for demand and supply management of TOP Crops

Question : 6

Consider the following statements:

  1. Price Stabilization Fund Scheme was launched for Coffee, Tea, Rubber and Tobacco growers in the country
  2. In this scheme Government procures the commodities when the prices fell below a certain level to support the growers
Which among the above statements is/ are correct ?

a) Both 1 and 2 are correct

b) Only 1 is correct

c) Only 2 is correct

d) Neither 1 nor 2 is correct

Answer: (b)

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