Ramesh Singh Test: Agriculture & Food Management- 2 - UPSC MCQ

The primary objective of agri commodity trading in India is to stabilize prices through market-based price discovery. By moving away from price controls imposed by entities like wholesalers and MSPs, market-oriented price determination aims to benefit both sellers and buyers, minimize price volatilities due to seasonal variations, and provide the right signals to all stakeholders involved in the agricultural economy.

Statement 1 is correct. The overall irrigation efficiency of the major and medium irrigation projects in India is indeed estimated at around 38 percent.

Statement 2 is incorrect. According to the NITI Aayog, the efficiency of surface irrigation systems can be improved from about 35-40 percent to around 60 percent, not 75 percent.

Statement 3 is correct. The yield of grain per kilogram of NPK fertilizer dropped significantly from 13.4 kg per hectare in 1970 to 4.1 kg per hectare in irrigated areas by 2021-22.

Thus, the correct statements are 1 and 3 only.

- Statement 1 is correct. The National Food Security Act provides a legal right to about 82 crore people for subsidised foodgrains, making it one of the largest social welfare programs.

- Statement 2 is correct. The Act mandates the use of information and communication technology (ICT), including end-to-end computerisation, to improve the implementation and efficiency of the Public Distribution System (PDS).

- Statement 3 is incorrect. The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme initially covered only small and marginal farm families holding cultivable land up to 2 hectares. It was later expanded to include all farmer families, irrespective of the size of their land holdings.

Therefore, the correct answer is Option B.

- Statement 1 is incorrect. Prices of agricultural goods in India are influenced by MSPs (Minimum Support Prices) and wholesale prices, which are not entirely market-based. MSPs are set by the government to ensure that farmers receive a minimum profit for their crops, while wholesale prices are often controlled by wholesalers. These prices are not error-free due to their non-market-based nature.

- Statement 2 is correct. Market-oriented price determination in agri commodity trading helps in minimizing price volatilities due to seasonal variations. This is because market prices reflect the actual supply and demand conditions, leading to more stable and predictable pricing.

- Statement 3 is correct. Market-based price discovery provides accurate signals to all stakeholders, benefiting both sellers and buyers. It ensures that prices reflect the true market conditions, helping stakeholders make informed decisions.

Hence, the correct answer is Option D.

- Statement-I is correct because the WTO categorizes agricultural subsidies into boxes (Green, Amber, Blue) based on their impact on production and trade.
- Statement-II is correct as the Green Box includes subsidies with minimal trade distortion, like research and development, and environmental measures.
- Since Statement-II provides additional details about the Green Box, it helps explain the categorization mentioned in Statement-I.
- Therefore, the correct answer is: A: Both Statement-I and Statement-II are correct and Statement-II explains Statement-I.

1. Upstream: Processing the materials collected into a finished product.
Incorrect. Upstream involves searching for and extracting raw materials, not processing them into finished products.

2. Downstream: Actual sale and contact with customers through the finished product.
Correct. Downstream involves processing the materials collected during the upstream stage into a finished product, and includes the actual sale and contact with customers.

3. Midstream: Points between raw material extraction and final consumer.
Correct. Midstream refers to several points in between the extraction of raw materials and the final consumer as a finished product, depending on the industry.

4. Supply Chain Management: Only involves the logistics of distributing finished products to customers.
Incorrect. Supply Chain Management covers all activities from product development, sourcing, production, logistics, and information systems, not just the logistics of distributing finished products to customers.

Thus, pairs 2 and 3 are correctly matched, making the correct answer Option B: Only two pairs.

The primary aim of the National Food Security Act in India is to ensure food and nutritional security for a significant portion of the population. This act provides a legal right to around 82 crore people for subsidized foodgrains, marking a historic initiative towards addressing food security issues in the country.

- Statement 1 is correct. The Amber Box includes subsidies that are considered to distort production and trade, such as minimum support prices (MSP) for agricultural products.

- Statement 2 is incorrect. The Blue Box subsidies are designed to reduce distortions in production and trade but are still connected to specific conditions like requiring farmers to limit their production to certain levels. They are not completely non-distorting, unlike the Green Box subsidies.

- Statement 3 is correct. The Green Box subsidies involve minimal or no distortions to trade and do not include price support measures. These subsidies encompass government expenditures such as public storage for food security, pest and disease control, research and extension services, and other forms of direct income support that are not linked to current production levels or prices.

Thus, the correct answer is Option C.

• Pair 1 (National Food Security Act): Correct. The National Food Security Act (NFSA) provides a legal right to subsidized foodgrains to approximately 82 crore (820 million) people in India.
• Pair 2 (PM-KISAN): Incorrect. Under PM-KISAN, ₹6,000 is transferred annually to the bank accounts of small and marginal farmers, not all landholding farmers, as there are eligibility restrictions based on landholding size.
• Pair 3 (Food Processing): Correct. Food processing includes a wide range of processes from basic cleaning and preservation to advanced value addition, such as making bakery products and instant foods.
• Pair 4 (Climate Smart Agriculture): Correct. Climate Smart Agriculture aims to transform agricultural systems to be more resilient and sustainable under changing climate conditions.

Therefore, only three pairs (1, 3, and 4) are correctly matched

The correct answer is (A) because both statements are factually accurate and related. Statement-I highlights the current low water productivity in India, while Statement-II provides specific improvement measures for irrigation efficiency, which directly addresses the issue raised in Statement-I. Thus, Statement-II explains the context provided in Statement-I, making both statements correct and connected.