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

Answer: (a)

India is the fourth largest producer, of natural rubber and fifth largest consumer of natural rubber and synthetic rubber together in the world. India in the world, shares more than 8.0% in the Natural Rubber Production.

Answer: (c)

Answer: (c)

Let us understand with an example:

Suppose the imported LPG cylinder price (i.e. international market price) is Rs. 800/cylinder. And govt announced that it will give Rs. 300/cylinder as a subsidy through Direct Benefit Transfer (DBT).

So, the consumers will purchase the cylinder from Oil Marketing Companies (OMC) like IOCL/BPCL at Rs. 800/cylinder and government will transfer Rs. 300/cylinder in consumers account.

Now, if the international price increases to Rs. 900/cylinder, then there are three options:

1. Consumers pay Rs. 900/cylinder and government transfer Rs. 400/cylinder in the account as DBT. But it will increase the overall subsidy bill of the government, which government don’t like
2. Consumers pay Rs. 900/cylinder and the government still transfer Rs. 300/cylinder in consumers account, but it will increase the price per cylinder by Rs. 600 (=Rs. 900 - Rs. 300) to the consumer from the earlier price of Rs. 500 (=Rs. 800- Rs. 300). For political and social reasons, govt. may not like this also.
3. Government forces OMCs (LPG cylinders are supplied through OMCs) to sell the cylinder still at Rs. 800/cylinder (a kind of forced regulation), So consumers pay Rs. 800/cylinder and they will get Rs. 300 in account from Govt. This will not increase govt. subsidy bill and consumers will also be happy. But it impacts the finances of OMCs.

If the government will choose the 3) option, then for OMCs it is a loss of Rs. 100/ cylinder. And this is called "Under-recovery" per cylinder.

Generally, because of political and social compulsions govt. uses this 3) option leading to huge under-recoveries by OMCs. Till the time price of crude/gas is benign/moderate, the under-recovery may be very less or nil but when it increases, the under-recovery of OMCs increases.

Answer: (d)

Saumitra Chaudhuri Committee has been appointed to recommend revisions to Wholesale Price Index. Average annual growth of the agriculture sector in the Eleventh Five Year plan was 3.3%.

Answer: (a)

The Bonded Labour System (Abolition) Act, 1976 was enacted to provide for the abolition of bonded labour system with a view to prevent the economic and physical exploitation of the weaker sections of the society.

It freed all the bonded labourers from bondage with simultaneous liquidation of their debts.

It made the practice of bondage a cognisable offence punishable by law. The Act is being administered and implemented by the Ministry of Labour and the State governments concerned.

Answer: (c)

The National Bamboo Mission is a Centrally Sponsored Scheme in which the contribution of the Central Government will be 100%.

The Scheme is implemented by the Division of Horticulture under the Department of Agriculture and Cooperation in the Ministry of Agriculture.