agriculture sector subsidy & food processing section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

As a lot of states in the post-independence period restricted leasing of agricultural land, it has started hurting agricultural productivity.

Central Government got a model act drafted on land leasing by an expert panel under the NITI Aayog in April 2016 and has forwarded it to States to implement it.

Important features of the model Act:

1. The model law enables tenant farmers and sharecroppers to avail bank credit, crop insurance and disaster relief benefits.
2. The model law will allow consolidation of farmland so that small plots of land that are economically unviable can be leased out (using tractors and farm equipment is not economically viable for small plots of 2-3 acres). Large operational holdings will reduce the cost of cultivation and increase the profitability of farming.
3. The duration of the lease and the consideration amount will be decided mutually by the owner and the tenant.
4. There will be no ceiling on the amount of land that can be leased out or consolidated as the state wants market forces to determine the size of operational holdings.
5. Under the new law, land can also be leased out for allied activities like livestock or· animal husbandry for a maximum period of five years.
6. The Model Act proposes a quicker litigation process in case of disputes, by suggesting recourse through criminal proceedings and special tribunal. The dispute settlement will be taken up at the level of the Gram Sabha, Panchayat and Tehsildar and are kept outside the jurisdiction of courts.

Answer: (c)

Food Corporation of India sells surplus stocks of wheat and rice under Open Market Sale Scheme (Domestic) at pre-determined prices through e-auction in the open market from time to time to enhance the supply of food grains during the lean season and thereby moderate the open market prices specially in the deficit regions.

Answer: (c)

Agriculture labourers in India are mainly dominated by the backward classes and more than 85% agriculture workers are mainly casual labourers.

Answer: (c)

ISOPOM provides flexibility to states in implementation based on a regionally differentiated approach for promoting crop diversification and providing a focus to the programme.

This scheme is under implementation in the country for the increasing area, production and yield of these crops from 2004- 05.

The pulses component was merged with NFSM w.e.f. April 2010.

Answer: (c)

Government implements a Market Intervention Scheme (MIS) at the request of a State/UT Government for the procurement of agricultural and horticultural commodities not covered under the Price Support Scheme.

The MIS is implemented in order to protect the growers of these commodities from making distress sales in the event of the bumper crop when the prices tend to fall below the economic level/cost of production.

Losses, if any, incurred by the procuring agencies are shared by the Central Government and the concerned State Government on a 50:50 basis (75:25 in the case of the North-Eastern States).

However, the amount of loss to be shared between the Central Government and the concerned State Government is restricted to 25% of the value of procurement. Profit, if any, earned by the procuring agencies are retained by them.