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 of the following is correct statement?
  1. Agriculture is the primary occupation in India as it provides direct livelihood to 59% of its labour force
  2. In India, 75% of below the poverty line (BPL) population lives in rural areas, and is directly or indirectly dependent on agriculture.
  3. Agriculture contributes to more than 13.7% (2013) of GDP, although this share has progressively declined from 57% in 1950-51.
  4. In developed countries, like the UK and USA, the share of agriculture in GDP is only around 2%.

(a) I, II & III

(b) I & II

(c) I & III

(d) All the above

The correct answers to the above question in:

Answer: (d)

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

Question : 1

In which of the following years was the Food Corporation of India (FCI) set up ?

a) 1960

b) 1955

c) 1965

d) 1970

Answer: (c)

The Food Corporation of India (FCI) was set up in 1965. Its objectives are Effective price support operations for safeguarding the interests of the farmers.

Distribution of food grains throughout the country for the public distribution system and maintaining a satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security.

Question : 2

Consider the following statements :

  1. Agriculture and Allied sectors contribute less than 20% of Gross Domestic Product of India.
  2. Around 60% of net sown agricultural area of India is depended on rainfall.
Which of the statements given above is/are correct?

a) 2 only

b) 1 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: (c)

Agriculture and Allied sectors contribute less than 20% around 17% of Gross Domestic product of India. Around 60% of net sown agricultural area of India is depended on rainfall.

Question : 3

Which of the following statements are true regarding the Model Agriculture Produce and Livestock Marketing Act 2017?

  1. It allows private wholesale mandi trade
  2. It allows contract farming
  3. The law proposes a cap on market/mandi fee
Select the correct answer using the code given below:

a) (ii) & (iii) only

b) (i) only

c) (ii) only

d) All of the above

Answer: (d)

As the Agriculture Produce Marketing Committee Acts (APMC) enacted by States did not allow wholesale trade through private mandis and exploited the farmers and consumers both, Central Govt. in April 2017 got a Model Agriculture Produce and Livestock Marketing (APLM) Act 2017 drafted and circulated to States to implement.

Following are the important features:

  • Allow private wholesale mandis (rather than just govt mandis in wholesale trade) Allow godowns, warehouses and cold storages to act as markets (this means that earlier they were not allowed to purchase from farmers in bulk and now they can act as private wholesale mandis and can procure in bulk from farmers)
  • The model act has also proposed to cap mandi fees (2% for fruits and vegetables and 1% for food grains, this is charged by the mandi operators for the maintenance of mandi)
  • Farmers can now directly sell to big retailers (through contract farming)

Question : 4

Which statement is correct regarding TPDS?

  1. It is targeted for rich people.
  2. It is targeted to poor people.
  3. This system started when the procurement and issue prices of PDS items saw a rise with the ushering in of economic reforms in the 1990s.

a) II & III

b) I & III

c) Only III

d) None of the above

Answer: (a)

Targeted PDS (TPDS) means targeting the PDS to the poor. This system started when the procurement and issue prices of PDS items saw a rise with the ushering in of economic reforms in the 1990s.

Question : 5

Consider the following statements regarding the 20th Livestock Census:

  1. Uttar Pradesh has the largest number of cattle populations
  2. Maharashtra has the largest poultry population
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: (d)

The provisional data for the 20th Livestock Census 2018 was released in Oct 2019 by the Dept. of Animal Husbandry and Dairying under the “Ministry of Fisheries, Animal Husbandry and Dairying”.

As per the data, West Bengal has the largest number of cattle (in the previous census UP had the largest cattle population) and Tamil Nadu has the largest number of poultry. Livestock population increased by 4.6% over Census 2011-12.

Livestock is commonly defined as domesticated animals raised in an agricultural setting to produce labour and commodities such as meat, eggs, milk, fur, leather, and wool.

Livestock (major species) includes Cattle (cows & ox), Buffalo, Sheep, Goat, Pig, Mithun, Yak, Horses & Ponies, Mule, Donkey, Camel etc. which stood at 54 crores in the latest census.

Question : 6

What is NABARD?

  1. They are apex institution for providing credit facility to agricultural and rural areas.
  2. These are the most important source of rural credit.
  3. They provide finance rural credit directly through Regional Rural Banks (RRBs).

a) Only II

b) I & II

c) Only I

d) None of the above

Answer: (c)

NABARD is the apex institution for providing credit facilities to agricultural and rural areas.

It came into existence on July 12, 1982, and took over the functions of the erstwhile Agricultural Credit Development (ACD), Rural Planning and Credit Cell (RPCC) of RBI and the Agricultural Refinance Development Corporation (ARDC).

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