Agriculture Sector Subsidy & Food Processing Section 5 Practice Questions Answers Test With Solutions & More Shortcuts

Answer: (c)

GDP has steadily increased in the last 10 years but agriculture growth has turned negative once in 2014-15.

Refer to the Trends.

Answer: (a)

The Price Stabilization Fund (PSF) was set up in 2014-15 under the Department of Agriculture, Cooperation & Famers Welfare (DAC&FW) to help regulate the price volatility of important agri-horticultural commodities like onion, potatoes and pulses were also added subsequently.

The PSF scheme was transferred from DAC&FW to the Department of Consumer Affairs (DOCA) w.e.f. 1st April 2016.

The scheme provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility and discourage hoarding and unscrupulous speculation. For building such stock, the scheme promotes direct purchase from farmers/farmers’ associations at farm gate/Mandi.

The PSF is utilized for granting interest-free advance of working capital to Central Agencies like NAFED (National Agricultural Cooperative Marketing Federation of India Ltd.) and SFAC (Small Farmers Agri-business Consortium), State/UT Governments/Agencies to undertake market intervention operations.

Apart from domestic procurement from farmers/wholesale mandis, import may also be undertaken with support from the Fund.

Answer: (d)

Agricultural income tax is levied on the income from Agriculture. At present agriculture is subjected to two direct taxes and they are agricultural Income tax and Land Tax.

They are levied by the state governments. Not all states levy agricultural income tax.

Answer: (d)

India is the 6th largest producer of coffee in the world having a share of around 2% in terms of global area. India contributes about 4% to world coffee production as well as in the International trade.

Answer: (a)

A National Horticulture Mission was launched in 2005-06 as a Centrally Sponsored Scheme to promote holistic growth of the horticulture sector through area based regionally differentiated strategies.

The scheme has been subsumed as a part of Mission for Integration Development of Horticulture (MIDH) during 2014-15.