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UPSC IAS Prelims Exam 2016 : Economic Survey 2015-16: PRICES, AGRICULTURE AND FOOD MANAGEMENT

May 7, 2016 14:26 IST

    UPSC IAS Prelims Exam will be conducted on 7 August 2016 and the Indian Economy will play an important role in the IAS Preparation as always. The UPSC Syllabus mention the Indian Economy and hence Economic Survey 2015-16 acquires a greater importance in the IAS Exam Preparation.

    Here we discuss some important questions from the Economic Survey 2015-16 - Prices, Agriculture and Food Management. Food Management is very important in the context of increasing issue of food security and the rising prices of the food items all over the world.

    Q.1 Which of the following  states experienced lowest inflation in 2015-2016 financial year

    a.    West Bengal
    b.    Karnataka
    c.    Tamil Nadu
    d.    Jammu and Kashmir

    Answer: a

    Explanation: Karnataka, Andhra Pradesh, Telengana and Jammu and Kashmir experienced higher inflation during April-December 2015 as compared to corresponding period of previous year. The reason for rising inflation in these states has been higher food inflation. West Bengal has experienced the lowest inflation during the current so far.

    Q.2  Consider the following statements

    1. The share of agriculture in employment according to NSSO is 17.4%

    2. The share of agriculture in gross domestic product 4.2%

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: d

    Explanation: The share of agriculture in employment was 48.9 per cent of the workforce while its share in the Gross Domestic Product (GDP) was 17.4 per cent in 2014-15. The Twelfth Five Year Plan (2012-13 to 2016-17) had envisaged a growth target of 4 per cent for agriculture and allied sectors, necessary  for the Indian economy to grow at over 8 per cent.

    Q.3  Consider the following statements

    1.  India has lowest cereal yield than china and U.S.A
    2. Introduction of Bt. Cotton resulted in decline in yield of cotton.

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: a

    Explanation: The introduction of Bt cotton resulted in a spurt in yield of cotton during the period 2010-11 over 2000-01 China has an average cereal yield of above 5800 kg per ha while India has less than 3000 kg per ha. USA has the largest average cereal yield of more than 7000 kg per ha.

    Q.4  Which of the following is/are reasons for non viability of irrigation system?

    1. Increasing shortage of water.
    2. Salination of soil
    3. Construction of dams.

    Select the correct answer from the following codes

    a.    Only 1
    b.    Only 1 and 2
    c.    Only 2 and 3
    d.    1,2 and 3

    Answer: b

    Explanation: The conventional systems of irrigation have become non-viable in many parts of India due to increasing shortages of water, wastage of water through over irrigation, and concerns of salination.

    Q.5 Which of the following is/are challenges to development and adoption of quality seeds in India?

    1. Lack of competition
    2. Non resolution to GM crops adoption
    3. High cost of seeds for small and marginal farmers

    Select the correct answer from the following codes

    a.    Only 1
    b.    Only 1 and 2
    c.    Only 2 and 3
    d.    1,2 and 3

    Answer: d

    Explanation: In India, there are multiple challenges to the development and adoption of quality seeds, in the form of inadequate research inputs for development of new seeds especially early ripening and resistant (to pest, moisture variations, etc.) varieties, high cost of seeds for small and marginal farmers, shortage of supply of quality seeds, non-resolution of issues related to adoption of Genetically Modified (GM) crops and inadequate number of players restricting competition.

    Q.6  Pardarshi Kisan sewa Yojana is

    a.    Subsidised loan to small and marginal farmers.
    b.    Subsidised electricity to small and marginal farmers.
    c.    Distribution of hybrid seeds through DBT.
    d.    Distribution of GM seeds through DBT.

    Answer: c

    Explanation: The Pardarshi Kisan Sewa Yojana (PKSY) was launched in September, 2014 and rolled out in April 2015 in Uttar Pradesh for distribution of hybrid seeds through DBT (Direct Benefit transfer). The PKSY has reduced leakages as subsidy goes directly into bank accounts of farmers.

    Q.7  Which of the following is/are true regarding fixing of price of cotton seeds in India?

    1.  So prices are administratively fixed.
    2.  Government decided to fix maximum sales. Prices of cotton through cotton seeds price (control) order 2015.
    3.  Maximum sales price does not include local tax/duties.

    Select the correct answer from the following codes

    a.    Only 1
    b.    Only 1 and 2
    c.    Only 2 and 3
    d.    1,2 and 3

    Answer: b

    Explanation: Given the past experience and limitations in administratively fixing prices in India. The Government decided to fix the maximum sale price of cotton seeds through the Cotton Seeds Price (Control) Order, notified in December 2015 fix and regulate the seed value and licensee fee including royalty or trait value, through a notification issued by the Ministry of Agriculture .The ‘maximum sale price’ is the maximum price inclusive of seed value, licence fee, trade margin and local taxes or duties, at which cotton seeds or transgenic varieties of cotton seeds are sold to farmers. The government, while fixing the maximum sale price, shall also fix and regulate the seed value and licence fee including royalty.

    Q.8  With reference to Soil and fertilizer, Which of the following is/are true?

    1. Indian soils show defiency of copper and Iron.
    2. Indian soils have low organic carbon.
    3. Organic composting and manure are cheaper than conventional fertilizers.

    Select the correct answer from the following codes

    a.    Only 1
    b.    Only 1 and 2
    c.    Only 2 and 3
    d.    1,2 and 3

    Answer: d

    Explanation: Indian soils show deficiency of micro nutrients like boron, zinc, copper and iron in most parts of the country, which limits crop yields and productivity Moreover, it is cheaper for small farmers to adopt and use organic composting and manure. With 67 per cent of Indian soil
    characterised by low organic carbon, there is great scope for enhancing the use of organic fertilizers.

    Q.9  Long term rural credit found (LTRCF) is set up in:

    a.    NABARD
    b.    RRB
    c.    Co operative banks.
    d.     Lead banks.

    Answer: a

    Explanation: The Government of India has allocated R15,000 Crores to the Long Term Rural Credit Fund (LTRCF) set up in the National Bank for Agriculture and Rural Development (NABARD) With the help of this fund, the Cooperative Banks/ Regional Rural Banks (RRBs) can draw much higher refinance support from NABARD for financing medium- and long term agricultural loans during 2015-16.

    Q.10  Consider the following statements regarding Gross capital formation (GCF)

    1.  The share of public sector in GCF has declined from 2004-2014

    2. The share of private sector in GCF has increased from 2004-2014

    Select the correct answer from the following codes

    a. Only 1
    b. Only 2
    c. Both 1 and 2
    d. Neither 1 nor 2

    Answer: c

    Explanation: The share of public sector in GCF declined from 20% to 16.8%. The share of Private sector increased from 78% to 83%.

    Q.11  With reference to horticulture, Which of the following is/are true?

    1. Percentage share of horticulture output in agriculture is more than 33%.
    2. Mission for integrated development of horticulture (MIDH) was launched during 11th plan.
    3. Coconut development board is independent of MIDH.

    Select the correct answer from the following codes
    a.    Only 1
    b.     Only 1 and 2
    c.    Only 2 and 3
    d.    1,2 and 3

    Answer: a

    Explanation: The percentage share of horticulture output in agriculture is more than 33 per cent Mission for Integrated Development of Horticulture (MIDH), was launched during the Twelfth Plan. The MIDH subsumes the National Horticulture Mission (NHM), the Horticulture Mission for North East & Himalayan States (HMNEH), the National Bamboo Mission (NBM), the National Horticulture Board (NHB), the Coconut Development Board (CDB) and the Central Institute for Horticulture (CIH), Nagaland.

    Q.12  Which of the following is/are true regarding National agriculture Market?

    1. It is set up through Agri- tech infrastructure fund (ATIF)
    2. The scheme was approved by department of agriculture.
    3.  It envisages setting up of common e- market platform.

    Select the correct answer from the following codes

    a.    Only 1
    b.    Only 1 and 2
    c.    Only 2 and 3
    d.    1,2 and 3

    Answer: b

    Explanation: The scheme for setting up of a National Agriculture Market (NAM) through an Agri-Tech Infrastructure Fund (ATIF) was approved by the Cabinet Committee on Economic Affairs (CCEA) scheme envisages implementation of NAM by setting up of an appropriate common e-market platform. The Small Farmers Agribusiness Consortium (SFAC) will implement the national e-platform The Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) will meet expenses on Soft ware and its customization for the States and provide it free of cost to the States and UTs. Integration of state Agricultural Produce Market Committees (APMC) with NAM requires certain pre-requisites in the State AMPC Acts.

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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