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 : 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

The correct answers to the above question in:

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.

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

Question : 1

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 : 2

Consider the followings statements with reference to the ‘Jaivik-kheti portal’:

  1. It is an E-commerce as well as a knowledge platform
  2. It is an initiative of the Ministry of Agriculture (MoA)
  3. Through this portal, buyers can avail organic products at their doorstep at much lower prices
Which of the statements given above is/are correct?

a) (i) & (iii) only

b) (i) & (ii) only

c) (ii) & (iii) only

d) All of the above

Answer: (d)

Jaivik-kheti portal is a unique initiative of the Ministry of Agriculture (MoA), the Department of Agriculture (DAC) along Metal Scrap Trade Corporation (MSTC) to promote organic farming globally.

It is a one-stop solution for facilitating organic farmers to sell their organic produce and promoting organic farming and its benefits.

Jaivik-kheti portal is an E-commerce as well as a knowledge platform. Buyers can now avail organic products at their doorstep through the portal at much lower prices.

Question : 3

Consider the following statements regarding the ‘National Technical Textile Mission’:

  1. The aim is to promote our domestic market through research and development
  2. Our growth in technical textiles is high as compared to the 4% world average growth
Select the correct answer using the code given below:

a) Both (i) & (ii)

b) (i) only

c) (ii) only

d) Neither (i) nor (ii)

Answer: (a)

Technical textiles are textiles materials and products manufactured primarily for specific scientific functions and industrial applications rather than for their look and beauty (aesthetic properties) is described as technical textiles.

In a nutshell, technical textiles is any fibre, yarn or fabric produced with a particular purpose and finish for well-defined end-use.

Function wise, Technical textiles are categorized into four main aspects:

  1. Mechanical functions: Pliability, resilience, tenacity and resistances are considered
  2. Exchange functions: Substitutes, materials used for separation, heat transfer, and absorptions are looked for
  3. Utility (for day to day living) functions: Ecosystems and health care products are wisely pooled together to form utility functions
  4. Protective functions: It includes fabrics that protect/shield us against electrical, IR, UV and chemical harshness

Indian textile segment is estimated at $16 billion which is approximately 6% of the world market size of $250 billion. The penetration level of technical textiles is low in India at 5-10%, against 30-70% in advanced countries. However, the annual average growth of the segment is 12% in India, as compared to 4% world average growth.

CCEA approved setting up of “National Technical Textiles Mission” at a total outlay/budget of Rs. 1480 crore, (it was proposed in the budget 2020-21) which will be implemented for four years starting from 2020-21 and will have four components

Component I: It will focus on research and development and innovation

Component II: The mission will focus on the promotion and development of the domestic market, targeting an average growth of 15-20%

Component III: This component aims at export promotion of technical textiles

Component IV: This component will promote technical education at higher engineering and technology levels

Question : 4

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 : 5

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

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.

Question : 6

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.

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