UPSC 2020 › Indian Economy › Agriculture & Rural Development

6 questions · 2020 · answers as per the UPSC key

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With reference to the Indian economy after the 1991 economic liberalization, consider the following statements :

  1. Worker productivity (₹ per worker at 2004 – 05 prices) increased in urban areas while it decreased in rural areas.
  2. The percentage share of rural areas in the workforce steadily increased.
  3. In rural areas, the growth in non-farm economy increased.
  4. The growth rate in rural employment decreased.

Which of the statements given above is/are correct ?

(a) 1 and 2 only
(b) 3 and 4 only
(c) 3 only
(d) 1, 2 and 4 only
Show answer
Answer: (b) 3 and 4 only

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 :

(a) 1, 2 and 5 only
(b) 1, 3, 4 and 5 only
(c) 2, 3 and 6 only
(d) 1, 2, 3, 4, 5 and 6
Show answer
Answer: (c) 2, 3 and 6 only

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

  1. Minimum Support Price
  2. Government’s trading
  3. Government’s stockpiling
  4. Consumer subsidies

Select the correct answer using the code given below :

(a) 1, 2 and 4 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Show answer
Answer: (d) 1, 2, 3 and 4

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

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

Select the correct answer using the code given below :

(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5
Show answer
Answer: (b) 1, 3 and 4 only

Consider the following statements :

  1. 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.
  2. 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 ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (d) Neither 1 nor 2

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

  1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
  2. Ammonia, which is an input of urea, is produced from natural gas.
  3. 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 ?

(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Show answer
Answer: (b) 2 and 3 only