agriculture sector subsidy & food processing section 8 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

In India, the commercial banks disburse around 60% credit followed by cooperative banks around 30% and RRB and others.

Answer: (d)

There are seven broad categories of essential commodities covered by the Act. These are

1. Drugs;
2. Fertilizer, inorganic, organic or mixed;
3. Foodstuffs, including edible oilseeds and oils;
4. Hank yarn made wholly from cotton;
5. Petroleum and petroleum products;
6. Raw jute and jute textile;

7. (i) seeds of food-crops and seeds of fruits and vegetables;

   (ii) seeds of cattle fodder; and

   (iii) jute seeds. Recently cotton seed was also included in the list.

Answer: (b)

Rural Infrastructure Development Fund (RIDF) was instituted in NABARD with an announcement in the Union Budget 1995-96 with the sole objective of giving low-cost fund support to State governments and state-owned corporations for quick completion of ongoing projects relating to medium and minor irrigation, soil conservation, watershed management and other forms of rural infrastructure.

Answer: (a)

The Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017 allowed direct sale by farmers to big retailers i.e. contract farming but left out all the provisions relating to contract farming and paved the way for drafting an exclusive model law on the subject of contract farming.)

Accordingly, Govt. drafted Model Agriculture Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018 and has asked States to implement the same. Following are important features:

Setting up of an appropriate and unbiased state-level agency called “Contract Farming (Development and Promotion) Authority” to carry out the assigned mandates under the provisions of contract farming and popularize it among the stakeholders.

No rights, title ownership or possession to be transferred or alienated or vested in the contract farming sponsor etc.

Promoting Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers to benefit from scales of economy in production and post-production activities. (i.e. FPOs can sign contract farming agreements with big retail chains or bulk buyers)

Answer: (c)

The area under foodgrains has declined in the last two decades and the average farm size in the country is very small and declining over the years.