agriculture sector subsidy & food processing section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

The Central Government formulated the Farm Income Insurance Scheme (FIIS) during 2003-04. The two critical components of a farmer’s income are yield and price. FIIS targeted these two components through a single insurance policy so that the insured farmer could get a guaranteed income.

The scheme provided income protection to the farmers by insuring production and market risks. The insured farmers were ensured minimum guaranteed income (that is, average yield multiplied by the minimum support price). If the actual income was less than the guaranteed income, the insured would be compensated to the extent of the shortfall by the Agriculture Insurance Company of India.

Initially, the scheme would cover only wheat and rice and would be compulsory for farmers availing crop loans. NAIS (explained in the section below) would be withdrawn for the crops covered under FIIS but would continue to be applicable for other crops.

Answer: (c)

The growth in agriculture and allied sectors is a necessary condition for inclusive growth in India.

Agriculture including allied activities accounted for about 55% employment in the country according to census 2011.

Answer: (a)

A Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A PO can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members.

The main aim of PO is to ensure better income for the producers through an organization of their own. Farmers Producer Organization (FPO) is one type of PO where the members are farmers.

Small Farmers’ Agribusiness Consortium (SFAC) and NABARD are providing support for the promotion of FPOs.

Answer: (b)

The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975.

The basic objective of the 20-Point Programme was to eradicate poverty and to improve the quality of life of the poor and the underprivileged population of the country including landless workers.

Answer: (c)