agriculture sector subsidy & food processing section 10 MCQ Questions & Answers Detailed Explanation

Answer: (b)

Answer: (a)

Nutrient Based Subsidy" is applicable for Phosphatic and Potassic (P&K) fertilizers only and not for Urea which is a Nitrogenous fertilizer. Govt. fixes the subsidy annually based on the per kg of nutrient present in the fertilizer.

As the subsidy given by the Govt. is fixed, so the market price of the fertilizers varies with the change in international prices.

So, market prices are not regulated by the government rather it is decontrolled.

Answer: (a)

A warehouse receipt is a document that proves ownership of a given commodity that is stored in a recognized location, like a warehouse or a godown. Negotiable warehouse receipts (NWRs) allow the transfer of ownership of a commodity stored in a warehouse without having to deliver the physical commodity.

The government of India enacted the Warehousing (Development & Regulation) Act 2007 under which it has constituted the Warehousing Development and Regulatory Authority (WDRA) under the Ministry of Consumer Affairs, Food and Public Distribution for the implementation of the provisions of the Act.

The main objectives of the Act are to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts and related matters. Any person commencing or carrying on the warehousing business and intending to issue Negotiable Warehouse Receipts (NWRs) has to get the warehouse registered with the Warehousing Development & Regulatory Authority (WDRA).

The WDRA checks the warehouse on various parameters and then issues a booklet containing the NWRs. The warehouse then issues these receipts to customers (farmers and people who have stored their produce in the godowns).

As these receipts are recognized by the government, banks can easily grant loans against them. The farmer gets an officially recognized receipt against which he can take a loan from the bank for further farming activities or alternatively sell his produce to a third person by endorsing the receipt, without even taking physical possession.

As per the Act, as of November 2017, WDRA has notified 123 agricultural commodities and 26 horticulture commodities for issuing NWRs. In September 2017, Government launched the Electronic Negotiable Warehouse Receipts (e-NWRs).

Answer: (a)

The Directorate of Marketing and Inspection (DMI) headed by the Agricultural Marketing Advisor, Department of Agriculture & Co-operation (DAC) implements agricultural marketing policies and programmes of the Government of India.

It undertakes:

1. Standardisation,
2. Grading and quality control of agricultural and allied produce,
3. Market Research and
4. Surveys along with other functions.

Answer: (b)

Answer: (c)

According to the Department of Agriculture, the share of agriculture workers and draught animals (farm power sources in agriculture) has come down from 63.5 per cent in 1971-72 to 13.67 per cent in 2009-10, whereas the share of tractors, power tillers, and motors has gone up from 36.51 per cent to 86.33 per cent during the same period.

Although India is the largest manufacturer of tractors in the world, accounting for one-third of the global production, farm mechanisation in India is still at a nascent stage, with the average farm power availability in the country lower than in countries such as Korea, Japan and the US.

India is meeting 80 per cent of its urea requirement through indigenous production but is largely import-dependent for meeting the requirements of potassic (K) and phosphatic (P) fertilizers. Chemical fertilizers have played a significant role in the development of the agricultural sector.

Consumption of chemical fertilizers has steadily increased over the years.