Agriculture and Allied Sectors

11. Consider the following statements: The Government of India provides

Consider the following statements:

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  1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
  2. Niger is cultivated as a Kharif crop.
  3. Some tribal people in India use niger seed oil for cooking.

How many of the above statements are correct?

Only one
Only two
All three
None
This question was previously asked in
UPSC IAS – 2023
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1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds. This statement is correct. Niger seed is one of the oilseeds for which the Minimum Support Price (MSP) is announced by the Government of India for both Kharif and Rabi seasons based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

2. Niger is cultivated as a Kharif crop. This statement is correct. Niger is predominantly a Kharif crop in India, sown with the onset of the monsoon (June-July) and harvested from September to November. It is primarily grown in states like Odisha, Chhattisgarh, Madhya Pradesh, Maharashtra, Andhra Pradesh, and Karnataka.

3. Some tribal people in India use niger seed oil for cooking. This statement is correct. Niger seed oil is edible and is traditionally used for cooking, especially by tribal populations and in rural areas where it is cultivated, due to its availability and nutritional properties. It is also used for other purposes like lighting and soap making.

All three statements are factually correct.

– Niger seed is covered under the Government of India’s MSP scheme.
– Niger is primarily grown during the Kharif season in India.
– Niger seed oil is used for cooking, including by some tribal communities.
Niger (also known as ramtil) is an important minor oilseed crop, particularly suited for cultivation on marginal lands and under rainfed conditions. It provides livelihood to farmers in hilly and tribal areas.

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12. Which one of the following best describes the concept of ‘Small Farmer

Which one of the following best describes the concept of ‘Small Farmer Large Field’?

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Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
Many marginal farmers in an area organize themselves into groups and synchronize agricultural operations
Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
A company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production
This question was previously asked in
UPSC IAS – 2023
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The concept of ‘Small Farmer Large Field’ (SFLF) refers to a model where small and marginal farmers, despite owning small, fragmented landholdings, come together and collectively manage or synchronize their agricultural operations to achieve the benefits of scale that would otherwise be available only to large farms. This collaboration can involve joint planning, bulk purchasing of inputs, collective use of machinery, synchronized planting and harvesting, and collective marketing of produce. This effectively creates a ‘large field’ effect in terms of operational efficiency, input costs, and market access, benefiting the individual small farmers.

Option A describes collective farming, possibly in a resettlement context, which isn’t the specific focus of the SFLF concept typically discussed in the context of existing marginal farmers.
Option C describes corporate farming or contract farming where farmers might lease out or surrender their land to a company, shifting control away from the farmers; SFLF aims at farmers retaining control and benefiting from collective action.
Option D describes contract farming where a company provides inputs and buys output, but it doesn’t necessarily involve the farmers pooling or synchronizing operations across their fields to create a large-scale operational unit.

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Option B, where many marginal farmers organize into groups and synchronize operations, best captures the essence of SFLF, enabling them to overcome the limitations of small land size through collective action and economies of scale in farming practices.

– ‘Small Farmer Large Field’ is a model for small and marginal farmers.
– It involves farmers organizing into groups and synchronizing operations.
– The goal is to achieve economies of scale similar to large farms while retaining ownership/control.
The SFLF concept is often promoted as a way to improve productivity, reduce costs, and enhance marketability for small farmers in countries where land fragmentation is a significant challenge. Various models exist for implementing SFLF, ranging from simple coordination of activities to more formal farmer producer organizations (FPOs) that manage collective operations and marketing.

13. Consider the following statements : 1. In terms of short-term credit

Consider the following statements :

  • 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
  • 2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct ?

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1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC IAS – 2020
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Statement 2 is correct, while Statement 1 is incorrect.
Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect.
Statement 2: The short-term cooperative credit structure is a three-tiered system: State Cooperative Banks (SCBs) at the state level, District Central Cooperative Banks (DCCBs) at the district level, and Primary Agricultural Credit Societies (PACS) at the village level. DCCBs act as a link between SCBs and PACS. A crucial function of DCCBs is indeed to channel funds received from SCBs (or refinanced by NABARD) to the PACS, which then provide credit directly to the farmers. This statement is correct.
The cooperative credit structure plays a vital role in providing financial services to rural areas, especially to small and marginal farmers. However, the cooperative sector has faced challenges related to governance, financial health, and competition from commercial banks and RRBs over the years. Recapitalization and reforms have been undertaken to strengthen the cooperative credit institutions.

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14. Consider the following statements: In the case of all cereals, pulse

Consider the following statements:

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  • In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
  • In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct ?

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC IAS – 2020
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The question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India.
– Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide.
– Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.
The government’s procurement operations primarily focus on food grains like wheat and rice through agencies like the Food Corporation of India (FCI). For other crops, procurement operations are often limited in scale and geographical reach, and market prices frequently fluctuate above and below the MSP.

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15. Under the Kisan Credit Card scheme, short-term credit support is given

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ?

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  • Working capital for maintenance of farm assets
  • Purchase of combine harvesters, tractors and mini trucks
  • Consumption requirements of farm households
  • Post-harvest expenses
  • Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below :

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1, 2 and 5 only
1, 3 and 4 only
2, 3, 4 and 5
1, 2, 3, 4 and 5
This question was previously asked in
UPSC IAS – 2020
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The Kisan Credit Card (KCC) scheme is designed to provide short-term credit support to farmers for various agricultural and related activities. The specified purposes for which credit is extended under the scheme typically include working capital for cultivation (covering inputs like seeds, fertilisers, pesticides), post-harvest expenses (like storage, marketing), produce marketing loans, consumption requirements of the farm household, and working capital for maintenance of farm assets and allied activities (like dairy, poultry, fisheries).
– Statement 1: Working capital for maintenance of farm assets is a valid purpose for short-term credit under KCC.
– Statement 2: Purchase of large farm machinery like combine harvesters, tractors, and mini trucks typically falls under long-term investment credit, not short-term KCC.
– Statement 3: Consumption requirements of farm households are included as a component of KCC credit.
– Statement 4: Post-harvest expenses are covered under the scheme.
– Statement 5: Construction of family house and setting up of village cold storage facilities are long-term investments, not covered by the short-term KCC scheme.
The KCC scheme aims to provide flexible and simplified credit access to farmers, covering both cultivation needs and certain non-farm activities and personal consumption, all within the short-term framework. Long-term capital investments are typically financed through separate term loans.

16. Which of the following factors/policies were affecting the price of ri

Which of the following factors/policies were affecting the price of rice in India in the recent past?

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  • Minimum Support Price
  • Government’s trading
  • Government’s stockpiling
  • Consumer subsidies

Select the correct answer using the code given below :

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1, 2 and 4 only
1, 3 and 4 only
2 and 3 only
1, 2, 3 and 4
This question was previously asked in
UPSC IAS – 2020
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All four factors listed significantly affect the price of rice in India:
1. Minimum Support Price (MSP): The MSP sets a floor price. Government procurement at MSP influences market supply and provides a benchmark, impacting open market prices, especially during harvest season.
2. Government’s trading: The government procures, stores, and distributes rice through schemes like the Public Distribution System (PDS). These trading activities (buying and selling/distributing) directly influence the supply available in the open market and hence impact prices.
3. Government’s stockpiling: The level of buffer stocks held by the government affects market expectations about future supply. Large stocks can stabilize prices, while depletion or surplus can lead to price fluctuations.
4. Consumer subsidies: Subsidies on rice distributed through PDS reduce the effective cost for consumers and ensure access for a large population. This influences overall demand dynamics in the market, indirectly affecting open market prices by diverting a portion of demand.
Government policies like MSP, procurement, stockpiling, and consumer subsidies are major interventions in the agricultural market in India that significantly influence the supply, demand, and ultimately the market price of essential commodities like rice.
Other factors affecting rice prices include production levels (influenced by monsoon, seeds, etc.), international prices, export/import policies, and logistics/storage infrastructure.

17. In India, which of the following can be considered as public investmen

In India, which of the following can be considered as public investment in agriculture?

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  • 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:

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1, 2 and 5 only
1, 3, 4 and 5 only
2, 3 and 6 only
1, 2, 3, 4, 5 and 6
This question was previously asked in
UPSC IAS – 2020
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Statement 1 is incorrect: Fixing Minimum Support Price (MSP) is a price policy intervention aimed at providing a safety net for farmers and influencing market prices. It is not considered a direct public investment in creating productive assets or infrastructure in agriculture.
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.
Public investment in agriculture focuses on creating durable assets, improving infrastructure, technology, research, extension, and human/social capital, as opposed to subsidies or financial relief measures which are typically considered revenue expenditure or transfers.
Examples of other public investments in agriculture include investment in irrigation projects, agricultural research and development, extension services, market infrastructure (mandis), soil health testing facilities, etc.

18. With reference to chemical fertilizers in India, consider the followin

With reference to chemical fertilizers in India, consider the following statements :

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  • At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
  • Ammonia, which is an input of urea, is produced from natural gas.
  • Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.

Which of the statements given above is/are correct ?

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1 only
2 and 3 only
2 only
1, 2 and 3
This question was previously asked in
UPSC IAS – 2020
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The correct option is B, as statements 2 and 3 are correct, while statement 1 is incorrect.
The Indian government provides subsidies on chemical fertilizers to ensure their availability to farmers at affordable prices. The pricing mechanism varies for different fertilizers like urea and P&K fertilizers. Raw materials for fertilizer production often come from natural gas and oil refining processes.
1. **Retail price:** The retail price of Urea is fixed (administered) by the Government of India through the Urea Policy, providing a subsidy to manufacturers. Prices of Phosphatic and Potassic (P&K) fertilizers were decontrolled to some extent but are under a Nutrient Based Subsidy (NBS) scheme, where a fixed subsidy is provided per nutrient, allowing manufacturers/importers to determine the Maximum Retail Price (MRP) to some extent, but still influenced by the subsidy. Therefore, it is incorrect to say that the retail price of *chemical fertilizers* is purely market-driven and not administered by the government, given the significant government control and subsidy mechanisms, especially for Urea.
2. **Ammonia production:** Ammonia (NH3), the primary input for urea synthesis, is predominantly produced in India and globally from natural gas (methane) through processes like steam reforming. This statement is correct.
3. **Sulphur as raw material:** Sulphur is a key raw material for producing sulphuric acid (H2SO4), which is essential for manufacturing various phosphatic fertilizers (like Single Super Phosphate – SSP, Diammonium Phosphate – DAP). Sulphur is a significant by-product recovered from the desulfurization of crude oil and natural gas in refineries and processing plants. This statement is correct.

19. Among the agricultural commodities imported by India, which one of the

Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

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Spices
Fresh fruits
Pulses
Vegetable oils
This question was previously asked in
UPSC IAS – 2019
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The correct answer is D. Among the agricultural commodities imported by India, vegetable oils account for the highest imports in terms of value in the last five years.
India is a major consumer of edible oils but domestic production does not meet the demand, leading to significant imports, particularly of palm oil, soybean oil, and sunflower oil. These imports consistently account for the largest share by value among agricultural commodities. While India also imports pulses, fresh fruits, and spices, the value of vegetable oil imports is typically much higher.
The large import bill for vegetable oils has implications for India’s trade balance and food security. The government has been promoting schemes to increase domestic oilseed production to reduce reliance on imports.

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20. With reference to the cultivation of Kharif crops in India in the last

With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements:

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  • 1. Area under rice cultivation is the highest.
  • 2. Area under the cultivation of jowar is more than that of oilseeds.
  • 3. Area of cotton cultivation is more than that of sugarcane.
  • 4. Area under sugarcane cultivation has steadily decreased.

Which of the statements given above are correct?

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1 and 3 only
2, 3 and 4 only
2 and 4 only
1, 2, 3 and 4
This question was previously asked in
UPSC IAS – 2019
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The correct answer is A, as statements 1 and 3 are correct.
Statement 1 is correct. Rice is the principal Kharif crop in India and is grown in the largest area among all crops during the Kharif season.
Statement 2 is incorrect. The area under the cultivation of oilseeds (such as soybean, groundnut, etc., which are significant Kharif crops) in India is substantially larger than the area under Jowar cultivation, especially considering only the Kharif season for Jowar.
Statement 3 is correct. The area under cotton cultivation in India is significantly more than the area under sugarcane cultivation. While sugarcane is also grown, its total area is less than that of cotton.
Statement 4 is incorrect. The area under sugarcane cultivation in India has not steadily decreased over the last five years; it has generally remained stable or shown some increase.
Understanding the relative cultivation areas of major crops in India is important for agricultural economics and geography. Kharif crops are sown with the onset of the monsoon (June-July) and harvested in September-October. Major Kharif crops include Rice, Jowar, Bajra, Maize, Cotton, Jute, Sugarcane, Groundnut, Soybean, and Pulses (like Arhar). Sugarcane is a tropical plant and is often grown as a multi-seasonal crop.

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