agriculture sector subsidy & food processing section 9 MCQ Questions & Answers Detailed Explanation

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)

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.

Answer: (d)

Ryotwari System was prevalent in parts of Madras, Bombay province and Assam.

Under this system, the cultivator paid the revenues directly to the state without an intermediary.