MSP, APMC & Procurement — Set 10
Indian Agriculture · MSP, APMC और खरीद · Questions 91–100 of 160
RKVY funds can be used by states for:
Correct Answer: B. Flexible agriculture development plans including allied sectors
RKVY provides flexible funding to states for implementing their agricultural development plans, including crop husbandry, horticulture, animal husbandry, fisheries, soil health, and agri-marketing. States prepare District Agriculture Plans (DAPs) and State Agriculture Plans (SAPs) to access RKVY funds. It gives states ownership over their agricultural strategies. RKVY-RAFTAAR specifically supports agri-startups and innovation.
National Food Security Mission (NFSM) focuses on increasing production of:
Correct Answer: B. Rice, wheat, pulses, coarse cereals, and oilseeds
National Food Security Mission (NFSM) aims to increase production of rice, wheat, pulses, coarse cereals, and oilseeds to ensure food security and increase farmers' incomes. It was launched in 2007-08 and covers specific districts with productivity gaps. NFSM provides seed, fertilizer, and technology demonstrations to bridge yield gaps. The mission directly supports the food grain procurement pipeline for MSP and PDS.
e-Rashtriya Kisan Agri Mandi (eRKAM) is related to:
Correct Answer: C. Electronic market for agricultural commodities
eRKAM refers to electronic markets for agricultural commodities, a concept linked to e-NAM integration. Various state governments have set up their own electronic trading portals that are integrated with e-NAM. eRKAM platforms aim to provide seamless electronic trading from farm gate to end buyer. They reduce transportation costs and improve price realization for farmers.
Direct Benefit Transfer in agriculture is primarily used to:
Correct Answer: B. Deliver fertilizer, crop insurance, and income support subsidies directly to farmer bank accounts
Direct Benefit Transfer (DBT) in agriculture transfers fertilizer subsidies, crop insurance premium subsidies, income support (PM-KISAN), and other scheme benefits directly to farmers' Aadhaar-linked bank accounts. This eliminates leakages and ensures 100% subsidy reaches genuine beneficiaries. The fertilizer DBT system was launched on a pilot basis and being scaled up. PM-KISAN is the largest agri DBT scheme.
Integrated Scheme for Agricultural Marketing (ISAM) includes which major component?
Correct Answer: A. e-NAM
Integrated Scheme for Agricultural Marketing (ISAM) is a central scheme that subsumed several earlier schemes and includes e-NAM as a major component. ISAM also covers construction of rural godowns (Gramin Bhandaran), AGMARKNET, and strengthening agri-marketing infrastructure. It is implemented by the Directorate of Marketing and Inspection and SFAC. ISAM aims for a unified approach to agri-marketing development.
Gramin Bhandaran Yojana (Rural Godown Scheme) provides what benefit?
Correct Answer: B. Capital investment subsidy for construction of rural storage godowns
Gramin Bhandaran Yojana provides capital investment subsidy for construction of rural godowns to help farmers store their produce near farms and avoid distress selling. Individual farmers, FPOs, cooperatives, and SHGs can avail the subsidy. Storage near the farm allows farmers to wait for better prices and reduces transportation costs. NABARD and NHB are channelizing agencies.
The term 'price discovery' in agricultural markets refers to:
Correct Answer: B. Determination of market price through supply-demand interaction in a competitive market
Price discovery refers to the mechanism by which the market price of an agricultural commodity is determined through the interaction of supply and demand. In well-functioning APMC mandis and e-NAM, competitive bidding leads to transparent price discovery. Poor infrastructure, information asymmetry, and limited competition distort price discovery. Improving price discovery is a key goal of agri-marketing reforms.
Which body accredits commodity exchanges for agricultural futures trading in India?
Correct Answer: C. FMC (now merged with SEBI)
The Forward Markets Commission (FMC) regulated commodity futures trading in India until 2015 when it was merged with SEBI (Securities and Exchange Board of India). Now SEBI regulates commodity derivatives trading through exchanges like MCX, NCDEX. Agricultural futures on NCDEX help farmers hedge against price risk. The government has periodically suspended futures trading in commodities like wheat and pulses to prevent speculation.
The term 'distress sale' in agriculture refers to:
Correct Answer: B. Selling crops at below-fair prices due to financial urgency or market pressure
Distress sale happens when farmers are forced to sell their produce immediately after harvest at low prices due to debt pressure, lack of storage, or market glut. Post-harvest distress selling is most common among small farmers who lack storage and working capital. MSP procurement, pledge financing, and Gramin Bhandaran Yojana are government tools to reduce distress selling. FPOs and cooperatives help members collectively hold produce for better timing.
Bharat brand retail outlets were launched by the government to:
Correct Answer: B. Sell food grains and pulses to consumers at subsidized rates to control inflation
Bharat brand retail stores were launched by the government (through NAFED, NCCF, and Kendriya Bhandar) to sell food staples like atta, dal, and rice at subsidized prices to consumers during periods of price spikes. This helps moderate retail food inflation. Bharat brand atta, Bharat dal, and Bharat rice were sold at prices below prevailing market rates. Stocks released under Bharat brand are sourced from buffer stocks.