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All questions of Indian Agriculture for B Com Exam

What is a major consequence of rural indebtedness on farmers' agricultural production?
  • a)
    Increased crop yields.
  • b)
    Enhanced technological innovation.
  • c)
    Decreased interest in farming.
  • d)
    Better access to credit.
Correct answer is option 'C'. Can you explain this answer?

A major consequence of rural indebtedness is the decreased interest in farming. Farmers burdened by debts often lose motivation and enthusiasm for agricultural production due to the financial pressures and difficulties associated with repaying loans.

Which agricultural export constitutes 10% of India's total exports and is the fourth-largest exported principal commodity?
  • a)
    Cotton
  • b)
    Spices
  • c)
    Dairy products
  • d)
    Basmati rice
Correct answer is option 'B'. Can you explain this answer?

Agricultural exports from India, specifically spices and spice products, constitute 10% of the country's exports and rank as the fourth-largest exported principal commodity.

What percentage of rural households in India depend on agriculture as their principal means of livelihood?
  • a)
    58%
  • b)
    72%
  • c)
    42%
  • d)
    89%
Correct answer is option 'A'. Can you explain this answer?

Around 58% of rural households in India rely on agriculture as their primary source of livelihood, making it a crucial sector for the country's economy.

Why do small farmers often resort to distress sale of their agricultural produce?
  • a)
    To gain more profit in the market.
  • b)
    To bypass the intermediaries.
  • c)
    Due to lack of storage facilities.
  • d)
    To establish their brand in the market.
Correct answer is option 'C'. Can you explain this answer?

Small farmers often resort to distress sale of their agricultural produce due to the lack of proper storage facilities. In the absence of suitable storage options, they are compelled to sell their produce immediately after harvest, even at lower prices, to avoid losses from spoilage and damage.

What is the purpose of co-operative marketing in the agricultural sector?
  • a)
    To establish large factories for agricultural processing.
  • b)
    To increase the role of intermediaries in marketing.
  • c)
    To enable farmers to sell their output collectively and get better prices.
  • d)
    To discourage farmers from participating in markets.
Correct answer is option 'C'. Can you explain this answer?

Co-operative marketing in the agricultural sector involves forming marketing societies by farmers to sell their produce collectively. This strategy aims to empower farmers through collective bargaining, helping them obtain better prices for their agricultural products and reduce dependency on intermediaries.

What is the primary goal of rural industrialization?
  • a)
    To shift all agricultural workers to urban areas.
  • b)
    To increase income disparities between rural and urban areas.
  • c)
    To reduce the dependency on local resources.
  • d)
    To raise per capita income and living standards in rural areas.
Correct answer is option 'D'. Can you explain this answer?

The primary goal of rural industrialization is to raise per capita income and living standards in rural areas. It aims to provide employment opportunities, diversify rural occupations, and utilize local resources for local needs, ultimately contributing to balanced regional development.

Which factor contributes to the perpetuation of rural indebtedness from one generation to another?
  • a)
    High agricultural production and profits.
  • b)
    Lack of awareness about legal rights.
  • c)
    Ancestral or inherited debt.
  • d)
    Government subsidies for farmers.
Correct answer is option 'C'. Can you explain this answer?

Ancestral or inherited debt is a significant factor contributing to the perpetuation of rural indebtedness from one generation to another. This debt is often passed down through generations, and the cycle continues as subsequent generations struggle to repay accumulated loans.

Which of the following is not a prevalent system of agricultural marketing in India?
  • a)
    Sale in Villages
  • b)
    Sale in Markets
  • c)
    Sale in Factories
  • d)
    Sale in Mandis
Correct answer is option 'C'. Can you explain this answer?

Among the options provided, "Sale in Factories" is not a prevalent system of agricultural marketing in India. The commonly observed systems include "Sale in Villages," "Sale in Markets," and "Sale in Mandis" (marketplaces where farmers sell their produce to wholesalers or retailers).

What is the estimated contribution of agriculture and allied sectors to India's Gross Value Added (GVA) during 2016-17?
  • a)
    10.2%
  • b)
    17.3%
  • c)
    25.6%
  • d)
    32.9%
Correct answer is option 'B'. Can you explain this answer?

The agriculture and allied sectors, including agriculture, livestock, forestry, and fishery, contributed an estimated 17.3% to India's Gross Value Added (GVA) during the fiscal year 2016-17.

Which measure is recommended to prevent rural indebtedness in the future?
  • a)
    Increase the burden of land revenue and rent.
  • b)
    Encourage private lending among farmers.
  • c)
    Promote awareness of legal rights among farmers.
  • d)
    Provide adequate credit facilities to farmers on reasonable terms.
Correct answer is option 'D'. Can you explain this answer?

To prevent rural indebtedness in the future, it is recommended to provide adequate credit facilities to farmers on reasonable terms. This can be achieved through measures like promoting co-operative credit and eliminating exploitative private lending, ensuring farmers have access to necessary funds without falling into debt traps.

What is the primary reason behind the fragmentation of land holdings in Indian agriculture?
  • a)
    Lack of proper irrigation facilities
  • b)
    Inefficient use of fertilizers
  • c)
    Inheritance laws
  • d)
    Low demand for agricultural produce
Correct answer is option 'C'. Can you explain this answer?

The fragmentation of land holdings in Indian agriculture is primarily caused by inheritance laws that lead to the sub-division of land among heirs, resulting in smaller and more fragmented plots.

What is one of the main defects of agricultural marketing in India mentioned in the text?
  • a)
    Excessive government intervention.
  • b)
    Lack of standardization in products.
  • c)
    Overemphasis on urban markets.
  • d)
    Excessive storage facilities in rural areas.
Correct answer is option 'B'. Can you explain this answer?

One of the main defects of agricultural marketing in India is the lack of standardization and grading of products. This deficiency hampers quality assurance and creates discrepancies in product pricing, affecting both farmers and consumers.

What percentage of India's total food market is contributed by the food processing industry?
  • a)
    10%
  • b)
    24%
  • c)
    32%
  • d)
    15%
Correct answer is option 'C'. Can you explain this answer?

The Indian food processing industry accounts for 32% of the country's total food market, making it one of the largest industries in India with significant economic impact.

What is the main purpose of the agricultural marketing system?
  • a)
    To provide surplus produce to consumers for free.
  • b)
    To ensure farmers receive high prices for their produce.
  • c)
    To facilitate the import of agricultural products.
  • d)
    To promote urbanization and industrialization.
Correct answer is option 'B'. Can you explain this answer?

The main purpose of the agricultural marketing system is to ensure that farmers are able to receive fair and reasonable prices for their surplus produce. This system helps in connecting farmers with consumers and making sure that the agricultural products reach the market efficiently. It aims to create a balanced relationship between producers and consumers, promoting the well-being of farmers and the availability of agricultural products to consumers.

What is the main purpose of consolidating small and fragmented land holdings in Indian agriculture?
  • a)
    To increase the use of chemical fertilizers
  • b)
    To promote organic farming
  • c)
    To improve irrigation facilities
  • d)
    To enhance agricultural productivity
Correct answer is option 'D'. Can you explain this answer?

Consolidation of small and fragmented land holdings aims to enhance agricultural productivity by creating larger and more efficient farms, reducing wastage of labor, and improving irrigation and cultivation practices.

Which factor contributes to the lack of proper storage facilities for farmers' produce in rural areas?
  • a)
    Lack of awareness among farmers.
  • b)
    Inadequate transportation facilities.
  • c)
    Rural farmers' preference for immediate sales.
  • d)
    Excessive government regulations.
Correct answer is option 'C'. Can you explain this answer?

The lack of proper storage facilities for farmers' produce in rural areas is often due to the preference of rural farmers to sell their surplus produce immediately after harvest. This urgency to sell their products leads to insufficient storage options and forces them to sell at low prices, contributing to post-harvest losses.

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