Agriculture: UPSC Previous Year Questions (Indian Economy)

Explanation

This is because the replacement of wooden ploughs (a less durable, less efficient tool) with steel ploughs (which are more durable, efficient, and require less labor for maintenance and use) leads to increased productivity per unit of capital, i.e., the plough itself. This represents a shift towards more capital-in-tensive technology. This is capital-augmenting rather than labor-augmenting progress because the improvement is in the capital itself (the plough), making it more productive, rather than increasing the labor force or improving labor productivity directly.

Explanation

The main aim of the Seed Village Concept is to involve farmers in the production of quality seeds through training, ensuring that these seeds are accessible to others at the right time and at affordable prices. This approach empowers farmers to contribute to seed production, meeting local demand and ensuring that both they and neighboring farmers have access to high-quality seeds.

Option (b) is correct: A village is referred to as a ‘seed village’ if a trained group of farmers produces seeds for a variety of crops and provides for the requirements of themselves, their fellow villagers, and villagers in nearby villages at an affordable price. Thus this option best captures the main objective of the Seed Village Concept, which focuses on training farmers to produce high-quality seeds for local use, ensuring accessibility and affordability.

Explanation

Statement 1 is correct: The Sugarcane price in India is determined by statutory provisions of the Sugarcane (Con-tro) Order, 1966 issued under the Essential Commodities Act (ECA), 1955. Until 2009, the Union Government fixed the Statutory Minimum Price (SMP) for sugarcane under the Sugarcane (Control) Order, 1966. However, from the 2009-10 sugar season onwards, the SMP was replaced by the Fair and Remunerative Price (FRP), which continues to be fixed by the Union Government based on recommendations of the Commission for Agricultural Costs and Prices (CACP). FRP is the minimum price that is determined by the government of India on the recommendation of CACP.

Statement 2 is correct: Both sugar and sugarcane are classified as essential commodities under the Essential Commodities Act, 1955, which allows the government to regulate their production, supply, and distribution to ensure availability and control prices.

Explanation

Statement 1 is incorrect: The Commission for Agricultural Costs and Prices (CACP) is responsible for recommending the Minimum Support Prices (MSP) for 23 crops (not 32), which include cereals, pulses, oilseeds, and other crops. These crops include 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops.

Statement 2 is incorrect: The National Food Security Mission (NFSM) was launched in 2007-08 by the Ministry of Agriculture and Farmers’ Welfare, not by the Ministry of Consumer Affairs, Food, and Public Distribution. The National Food Security Mission (NFSM) aims to increase the production of rice, wheat, and pulses through area expansion, productivity improvement, and restoring soil fertility. It also focuses on creating jobs and boosting the farm economy. From 2014-15, coarse cereals were included in the mission. Key interventions include demonstrations of improved farming practices, seed distribution, farm machinery, efficient water use, plant protection, soil management, and farmer training.

Explanation

Pair 1 is correct: According to the "Press Note on Advance Estimates of National Income, 2008-09" released by the Ministry of Statistics and Programme Implementation (MoSPI), the per capita income at current prices during 2008-09 was estimated to be 38,084. Therefore, the figure of 37,000 is approximately correct.

Pair 2 is incorrect: As per the "Agricultural Statistics at a Glance 2008" published by the Ministry of Agriculture & Farmers Welfare, Government of India, the production of rice during the 2006-07 crop year was approximately 93.35 million tons. Thus, the figure of 180 million tons is significantly higher than the actual production during that period.

Pair 3 is correct: As per the "Agricultural Statistics at a Glance 2008" published by the Ministry of Agriculture & Farmers Welfare, wheat production during the 2006-07 crop year was around 75.80 million tons. Therefore, the figure of 75 million tons is approximately correct.

Explanation

Assertion (A) is false: India does export natural rubber, although in limited quantities. While India is primarily a net importer of natural rubber to meet domestic demand, it also exports small amounts, especially of certain grades like RSS (Ribbed Smoked Sheets). Reason(R) is True: In the early years of 2000s, India was a major producer of natural rubber, and around 97% of its domestic demand for natural rubber was met from domestic production.

Explanation

Statement 1 is correct: The government provides higher and more stable Minimum Support Prices (MSP) for food grains like rice and wheat, which incentivizes farmers to prioritize these crops over oilseeds.

Statement 2 is correct: In 2004-2005, much of India’s oilseed farming depended on monsoon rains, making it sensitive to weather changes. The Economic Survey 2004-05 noted that irregular rainfall in 2004 caused a big drop in the production of rainfed crops like oilseeds and pulses. Most oilseed farming in India still relies on rainfall.

Statement 3 is correct: By 2004, India was producing 650,000 tons of rice bran oil from 4 million tons of rice bran through solvent extraction. However, this was only half of the potential, as the country’s paddy production could generate 9.8 million tons of rice bran annually, but only 5 million tons were processed. The untapped potential of rice bran oil and other non-tradition-al edible oils, like tree-borne oils, contributed to higher import dependence. By 2004, India produced 650,000 tons of rice bran oil from 4 million tons of rice bran, but only half of its 9.8 million-ton potential was utilized. Limited use of non-traditional edible oils like rice bran and tree-borne oils increased import dependence.

Statement 4 is incorrect: Oilseed’s import is not necessarily cheaper to import oilseeds. The import dependency is more because of inadequate domestic production rather than cost advantage.

Explanation

Statement 1 is correct: The government sets specific procurement targets for each crop season based on factors like estimated production, buffer stock requirements and market conditions. In case, there is no procurement target, the government allows the procurement agencies like the FCI to buy flexibly from the farmers.

Statement 2 is incorrect: The Government of India announces MSP for a variety of crops, including cereals, pulses, oilseeds, and commercial crops like cotton and jute.

Statement 3 is correct: Under the Targeted public Distribution System (TPDS), wheat and rice are allocated to States/Union Territories by the Government of India at uniform Central Issue Prices (CIP) for distribution to different categories, such as Antyodaya Anna Yojana (AAY) and Below Poverty Line (BPL) families.

Explanation

According to the Economic Survey 2001-02, during the period from 1997-1998 to 1999-2000, marine products were the largest agricultural export by India in terms of value due to high global demand in countries like the USA, Japan, and Europe, and improved processing and storage. Here is a breakdown of the export values (in million USD) for key commodities during this period according to the Economic Survey 2001-02.

Explanation

Procurement prices refer to the prices at which the government purchases food grains from farmers to maintain the Public Distribution System (PDS) and to build buffer stocks. These prices are set by the government and can sometimes be different from the minimum support prices (MSP).

Option (a), (c) and (d) are incorrect:

Minimum Support Price (MSP) is the price fixed by the government to protect farmers from market fluctuations. It serves as a price floor, ensuring farmers receive a minimum guaranteed price for their crops. However, MSP is not the actual purchase price of grains. The government may procure food grains above the MSP at procurement prices. Issue prices are the prices at which the government sells food grains to consumers through the Public Distribution System (PDS).These prices are generally subsidized and lower than procurement prices to ensure affordability for the poor. A ceiling price is the maximum price that can legally be charged for a product, typically set to prevent overpricing by market forces.