In India, which of the following can be considered as public investment in agriculture?
- 1. Fixing Minimum Support Price for agricultural produce of all crops
- 2. Computerization of Primary Agricultural Credit Societies
- 3. Social Capital development
- 4. Free electricity supply to farmers
- 5. Waiver of agricultural loans by the banking system
- 6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
[amp_mcq option1=”1, 2 and 5 only” option2=”1, 3, 4 and 5 only” option3=”2, 3 and 6 only” option4=”1, 2, 3, 4, 5 and 6″ correct=”option3″]
This question was previously asked in
UPSC IAS – 2020
Statement 2 is correct: Computerization of Primary Agricultural Credit Societies (PACS) is an investment in rural financial infrastructure and digital technology, aimed at improving the efficiency of credit delivery to farmers. This constitutes a public investment in the agricultural sector’s support system.
Statement 3 is correct: Social Capital development, such as forming and strengthening farmer groups, cooperatives, and Farmer Producer Organizations (FPOs), is an investment in human and organizational resources that can improve agricultural practices, market access, and collective action. Government expenditure on facilitating this is considered a public investment in agricultural development.
Statement 4 is incorrect: Free electricity supply to farmers is a subsidy provided to reduce input costs. While it supports irrigation and production, it is a current expenditure/transfer, not an investment in creating a public asset or long-term productive capacity, although reliable power supply is part of infrastructure. However, ‘free supply’ is classified as subsidy/revenue expenditure, not capital investment.
Statement 5 is incorrect: Waiver of agricultural loans is a financial relief measure to address farmer debt distress. It is a transfer payment or fiscal measure, not a public investment aimed at enhancing the sector’s productive capacity.
Statement 6 is correct: Setting up of cold storage facilities by the government is a direct public investment in post-harvest infrastructure. This infrastructure improves storage, reduces spoilage, and helps farmers access better markets, thereby enhancing the sector’s capacity.
Therefore, 2, 3, and 6 represent public investments in agriculture.