Agriculture and Allied Sectors Archives

61. Which one of the following factors is not considered in determining th

Which one of the following factors is not considered in determining the Minimum Support Price (MSP) in India ?

[amp_mcq option1=”Cost of production” option2=”Price trends in international and domestic markets” option3=”Cost of living index” option4=”Inter-crop price parity” correct=”option3″]

This question was previously asked in

UPSC CDS-2 – 2019

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The Minimum Support Price (MSP) in India is determined by the Commission for Agricultural Costs and Prices (CACP). Factors considered by CACP include the cost of production (A), trends in domestic and international markets (B), inter-crop price parity (D), terms of trade between agriculture and non-agriculture sectors, demand and supply situation, likely implications of MSP on consumers, environment, and overall economy. The Cost of Living Index (C) is related to general consumer price levels and wages, and while MSP can impact the cost of living (food inflation), the index itself is not a primary factor used *in the calculation* for setting MSP for agricultural produce.

MSP determination is a complex process involving multiple economic factors related to production costs, market dynamics, and overall economic balance.

Different cost concepts (A2, A2+FL, C2) are considered for calculating the cost of production (Factor A). Inter-crop price parity ensures that farmers are not incentivized to excessively grow one crop over others due to price differences, helping maintain agricultural diversity.

62. Which one of the following is an example of a price floor ?

Which one of the following is an example of a price floor ?

[amp_mcq option1=”Minimum Support Price (MSP) for Jowar in India” option2=”Subsidy given to farmers to buy fertilizers” option3=”Price paid by people to buy goods from ration shops” option4=”Maximum Retail Price (MRP) printed on the covers/packets of goods sold in India” correct=”option1″]

This question was previously asked in

UPSC CDS-2 – 2019

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A price floor is a minimum price set by the government or a group, above the equilibrium price, to protect sellers. Minimum Support Price (MSP) for agricultural products in India is a classic example of a price floor. The government announces MSPs for various crops, ensuring that farmers receive a guaranteed minimum price for their produce, even if market prices fall below this level.

A price floor is a minimum legal price. If set above the equilibrium price, it is binding and can lead to surpluses.

Option B (Subsidy) is a direct payment, not a price control. Option C (Price at ration shops) is typically a subsidized price below the market price, closer to a price ceiling concept. Option D (MRP) is a Maximum Retail Price, which is a price ceiling (a maximum legal price).

63. Statement I: Agriculture in India still accounts for a substantial sha

Statement I: Agriculture in India still accounts for a substantial share in total employment.
Statement II: There has been no decline in volatility of agricultural growth in India.

[amp_mcq option1=”Both the statements are individually true and Statement II is the correct explanation of Statement I” option2=”Both the statements are individually true but Statement II is not the correct explanation of Statement I” option3=”Statement I is true but Statement II is false” option4=”Statement I is false but Statement II is true” correct=”option3″]

This question was previously asked in

UPSC CDS-2 – 2018

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Both the statements are individually true but Statement II is not the correct explanation of Statement I.

– Statement I is true: Despite structural shifts in the economy and a declining share in GDP, agriculture remains a significant source of employment in India, supporting a large portion of the workforce, particularly in rural areas.
– Statement II is true: Agricultural growth in India continues to be susceptible to external factors, especially monsoon and climate variations, leading to considerable volatility in output and growth rates from year to year. Despite investments in irrigation and technology, complete stability has not been achieved.

– While both statements present true characteristics of Indian agriculture, the volatility of agricultural growth (Statement II) does not explain why it accounts for a substantial share in total employment (Statement I). The high employment share is due to the large size of the rural population, limited alternative non-farm employment opportunities, and historical dependence on the sector.

64. With regard to the cabinet decision in July 2018, the percentage incre

With regard to the cabinet decision in July 2018, the percentage increase in Minimum Support Price (MSP) is maximum in which one of the following crops?

[amp_mcq option1=”Jowar (Hybrid)” option2=”Bajra” option3=”Maize” option4=”Soya bean” correct=”option1″]

This question was previously asked in

UPSC CDS-2 – 2018

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With regard to the cabinet decision in July 2018 on Minimum Support Prices (MSP) for Kharif crops, the percentage increase was maximum in Bajra.

– In July 2018, the Union Cabinet approved the MSP for Kharif crops for the 2018-19 season.
– The MSP for Bajra was increased significantly from ₹1,175 per quintal to ₹1,950 per quintal, a hike of ₹775 (approximately 65.96% increase) which the government then stated was a 97% increase accounting for cost of production (A2+FL cost). Using the simple MSP change percentage, it was still among the highest. Other options had smaller percentage increases.

– The government aimed to ensure that farmers received MSP at least 1.5 times their cost of production, as announced in the budget for 2018-19.
– The MSP increase for Bajra was indeed the highest in percentage terms among the options provided and many other Kharif crops announced at that time.

65. Which one of the following was not a part of the strategies followed b

Which one of the following was not a part of the strategies followed by the Government of India to increase food grain production in India immediately after Independence?

[amp_mcq option1=”Intensification of cropping over already cultivated land and fallow land” option2=”Increasing cultivable area by bringing cultivable area under plough” option3=”Using high-yielding varieties (HYV) seeds” option4=”Switching over from cash crops to food crops” correct=”option3″]

This question was previously asked in

UPSC CDS-2 – 2018

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The correct answer is C) Using high-yielding varieties (HYV) seeds.

Immediately after India gained independence in 1947, the focus of agricultural policy was primarily on increasing food production through methods available at the time, such as expanding the cultivated area (by bringing fallow land and culturable wasteland under plough), promoting intensification of cropping on existing land, and encouraging a shift from cash crops to food crops to address immediate food shortages. The extensive use of High-Yielding Variety (HYV) seeds, along with chemical fertilizers and assured irrigation, was the cornerstone of the Green Revolution, which was initiated in the mid-1960s, particularly from 1965-66 onwards. Thus, HYV seeds were not a strategy employed “immediately after Independence.”

Early agricultural strategies included measures like irrigation projects, land reforms, and community development programs aimed at improving agricultural practices and infrastructure. The Green Revolution marked a technological breakthrough that significantly boosted food grain production, especially wheat and rice, but it occurred roughly two decades after Independence.

66. Which one of the following statements about various horticulture crops

Which one of the following statements about various horticulture crops of India for the year 2016-17 is not correct?

[amp_mcq option1=”The area under horticulture crops has increased over previous year.” option2=”Fruit production during the current year is higher than the previous year.” option3=”Rate of increase in onion production is more than potato production in the current year in comparison to the previous year.” option4=”The major tomato-growing States are Madhya Pradesh, Andhra Pradesh, Karnataka, Odisha and Gujarat.” correct=”option3″]

This question was previously asked in

UPSC CDS-2 – 2017

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Based on data for the year 2016-17, the rate of increase in onion production was not necessarily more than that of potato production compared to the previous year. While both productions increased, potato production saw a significant rise in 2016-17.

This question tests specific knowledge about agricultural production statistics for a particular year. Statements A, B, and D are generally consistent with the overall trends in Indian horticulture during 2016-17, which saw increased area and production, and the listed states being major tomato producers. Statement C makes a specific comparative claim about growth rates which was not accurate based on the actual data for that year.

In 2016-17, India witnessed record horticulture production. Area under horticulture increased, and fruit production also registered growth. Madhya Pradesh, Andhra Pradesh, Karnataka, Odisha, and Gujarat are indeed among the major tomato-growing states in India. However, potato production saw a substantial increase (over 13%) in 2016-17, while onion also increased but possibly at a different rate, making statement C incorrect.