4 Marks Question

Question 14 Marks

Describe any four suggestions to improve agriculture marketing.

Answer

Creating orderly and transparent marketing conditions for regulation of markets.
Providing physical infrastructural facilities like roads, railways, godowns, cold-storage, warehouses etc.
Co-operative marketing to help in realising fair price for the farmer's product. (The success mantra of the milk co-operatives at Anand in Gujarat stands a testimony to the important role of co-operatives in an economy but in the recent past, the co-operatives have received a setback.)
Policy instruments like.

assurance of Minimum Support Price (MSP) for agricultural products.
Maintenance of Buffer Stocks of wheat and rice by FCI.
Distribution of the essential food grains and sugar through the system of Public Distribution i.e. P.D.S.

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Question 24 Marks

Give an account of how moneylenders kept the small and marginal farmers in a debt-trap at the time of independence.

Answer

At the time of independence it was the moneylenders and traders who exploited the small and marginal farmers who were landless labourers. They had to borrow for meeting their initial investment needs like buying seeds, implements, fertilisers and meeting other social expenditure, like on marriages, deaths and other social ceremonies.
Once the farmers fell into the crutches of these moneylenders, they continued to be exploited by way of paying high interest rates and manipulation of the accounts by the lenders. All this was done, in order to entangle them into a 'debt-trap'.
The inability of the farmers to pay back the loans taken added to their agony and frustration. So, they started taking the extreme step of committing suicides as they were victims of 'vicious circle of poverty.

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Question 34 Marks

Mention briefly the problems related to agricultural finance in India.

Answer

Rural banking has expanded a great deal in India. But there are certain deficiencies which have led to the problems related to agricultural finance. These are:

Credit has been linked with collateral, because of which small and marginal farmers have not been the major beneficiary of it.
The government has often been very lenient on the recovery of loans from the farmers, because of which there has been large number of overdue instalments.
Most financial institutions have failed to develop a culture of thrift among the farming families.
Mobilisation of deposits has never been encouraged.

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Question 44 Marks

What are the alternative channels available for agricultural marketing? Give some examples.

Answer

There are various alternative channels available for agricultural marketing under which the farmers can sell their product directly to the consumers, it increases their incomes. Some examples of these channels are Apni Mandi (Punjab, Haryana and Rajasthan); Hadaspar Mandi (Pune); Rythu Bazars (vegetable and fruit markets in Andhra Pradesh and Telangana) and Uzhavar Sandies (farmers markets in Tamil Nadu). Another alternative channel for agricultural marketing is the contract of direct sales between the farmers and the national and international companies. These companies offer advance payments to the farmers for supplying products at pre-determined rates. These alternative agricultural channels raise farmer's income and simultaneously reduce price risk for the small and marginal farmers.

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Question 54 Marks

Explain different sources of credit in rural areas.

Answer

NABARD is an apex institution entrusted with all matters concerning policy, planning and operations in the field of rural credit and related economic activities. It does not lend to general public directly but serves as a funding agency for the institutions providing credit in rural areas.Those who lend to public directly can be categorised into:

Institutional Sources of Credit: Institutional credit institutions include Cooperative Credit Societies, Regional Rural Banks, Land Development Banks and Commercial Banks. Together they constituted only 7% of credit needs of the farmers in 1950-51 but by 1981 their share increased to 63% and at present it is 74%.
Non Institutional Sources of Credit: Landlords, village traders and moneylenders are major non institutional sources of credit. At the time of independence their share in total credit was 93% but it has declined sharply over years. But since these credits are not backed by written records, we can't be sure of the available statistics.

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Question 64 Marks

Organic faming is a holistic way of life. Do you agree? Support your answer with arguments.

Answer

I agree that organic farming is a holistic way of life:

Organic farming is the process of producing food naturally.
This method avoids the use of synthetic chemical fertilizers and genetically modified organisms.
It is eco-friendly and essential for sustainable development. It has a zero impact on environment.
It substitutes costlier agricultural inputs such as HYV seeds, chemical fertilizers, pesticides, locally produced organic inputs etc. which are cheaper and thereby generate good returns on investments.
It generates income through export as the demand, for organically grown crops are on the raise.
It provides healthy food as organically grown food has more nutritional value than food grown through chemical farming.
It can provide more employment opportunities in India as it requires more labourers for production than chemically produced goods.

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Question 74 Marks

How has Tamil Nadu Women in Agriculture (TANWA) encouraged women to participate in raising agricultural productivity?

Answer

Tamil Nadu Women in Agriculture (TANWA) is a project initiated in Tamil Nadu to train women in latest agricultural techniques. Women use the accumulated savings to promote small-scale household activities like mushroom cultivation, soap manufacture etc.

The women Self Help Groups (SHGs) have provided marketing facilities for the farmers, who produce pulses and maize, with the help of National Agriculture Marketing Federation (NAMF).
The procurement has stabilised the price for the products of the farmers. Besides providing an assured market place, it has kept the price offered by private parties in the market on the higher side.
Farmers have benefited out of the marketing facilities provided by the Women Self Help Groups.

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Question 84 Marks

Read the passage given below and answer the following questions from 1 to 4.
The government is planning to enhance welfare schemes for villagers by making sure that all eligible people in various database in different ministries get benefits.
Officials said they have begun the process by looking at the Aadhar-based list of ration card holders and the rural development ministry's data on deprived household.
"The convergence of data will help in mapping the eligible people in rural areas who are still not covered under Food Security Act that provides rice and wheat at subsidised prices. At the same time, it will bring a fair picture of rural households in the country which are deprived of basic amenities. This will also help government to reach out to people who are in need", said a food ministry official. The government has database of more than 800 million beneficiaries covered under Food Security Act. It has implemented 'one nation one ration card' scheme in 28 states and 8 union territories covering 686 million people where a person can get subsidised foodgrains from any ration shop irrespective of the State, Municipality or Panchayat where the person is registered.
Source: The Economic Times, November 19, 2020

Rice and wheat are provided at............. prices.

Normal
Higher
Subsidized
None of these

Food Security Act implemented:

one tax one nation
one nation one ration card
demonetization
None of the above

Rural households are............. of basic amenities.

Privileged
Deprived
Spoiled
None of these

Officials have begun the process by working at the ............. use of ration card holders.

PAN
Aadhar
Voter card
None of these

Answer

(C)Subsidized
(B) One nation one ration card
(B) Deprived
(B) Aadhar

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Question 94 Marks

What is 'Organic farming'? Mention any two advantages of organic farming in India.

Answer

Organic farming is a eco-friendly technology, which is a whole system of farming that restores, maintains and enhances the ecological balance. Some of its merits are:

It is a means to replace the expensive agricultural inputs with the cheaper locally produced organic inputs.
Organic inputs bring about rich returns on investment.
Organic farming also generates large income by way of exports, as the organic crops are much more in demand today.
Organic food possesses more nutritional value than chemical farming, so it is more healthy in nature.
Organic food is pesticide-free and produced in an environmentally sustainable manner, so it promotes sustainable development.

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Question 104 Marks

Read the passage given below and answer the following questions from 1 to 4.
The revolutionary, 'Billion-litre idea' and execution of the world's largest dairy-agricultural development programme, 'Operation Flood' transformed India from a nation with potential in the dairy industry to a nation with massive production of milk and dairy products.
Operation Flood is the programme initiated by the National Dairy Development Board to speed up "the White Revolution." It created a national milk grid linking producers throughout India with consumers in over 700 towns and cities, reducing seasonal and regional price variations while ensuring that the producer gets a major share of the price, consumers pay, by cutting out middlemen.
The bedrock of Operation Flood that made the White Revolution a success, was village milk producers' cooperatives, which procured milk and provided inputs and services, making mode management and technology available to members.

Operation Flood was initiated in:

1965
1966
1967
1968

Operation Flood is based on the model of....................?

cooperative marketing
regulated marketing
Both [a] and [b]
None of the above

Operation Flood was first commenced in..............?

Gujarat
Andhra Pradesh
Uttar Pradesh
Bihar

Operation Flood is an example of............. of productive activity in the rural areas.

centralisation
diversification
Both [a] and [b]
None of the above

Answer

(B) 1966
(A) cooperative marketing
(A) Gujarat
(B) diversification

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Question 114 Marks

Which are the areas that need fresh initiatives for development in India?
OR
What are the key issues in rural development?

Answer

Some of the areas which are in need of fresh initiatives for development in India are:

Development of literacy, more specifically female literacy, education and skill development.
Development of health, addressing both sanitation and public health.
Land reforms.
Development of productive resources of each locality.
Infrastructure development like electricity, irrigation, transport facilities, marketing and storage facilities and facilities for agricultural research, etc.
Special measures for alleviation of poverty and improving the living standards of the weaker sections.

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Question 124 Marks

Is it possible to develop information technology as an alternate livelihood option? Give reasons.

Answer

Information Technology (IT) has revolutionized many sectors in the Indian economy. This fact is described in the following points:

The role of IT is justified by the increased ability of the government to predict areas of food insecurity and vulnerability through its use.
It also has a positive impact on the agricultural sector as it disseminates the information regarding emerging technologies and their applications, prices, weather, soil conditions, etc.
It also has a potential of employment generation in rural areas. The initiative of private sector along with support from government has made it possible to develop this sector as a sustainable livelihood option.

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Question 134 Marks

Match the following.

S.No
1.	Green revolution	Fruits production
2.	Yellow revolution	Milk production
3.	White revolution	Food grains production
4.	Golden revolution	Oilseeds production

Codes:

S No.	I	II	III	IV
(a)	(iv)	(i)	(ii)	(iii)
(b)	(iii)	(i)	(ii)	(iv)
(c)	(iii)	(iv)	(ii)	(i)
(d)	(iv)	(iii)	(i)	(ii)

Answer

(c)

(iii)

(iv)

(ii)

(i)

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Question 144 Marks

How are credit and marketing significant for the progress of agriculture?

Answer

Importance of Credit: In agriculture there is a long gap between crop sowing and realisation of income, farmers are in strong need for credit. Farmers need money to meet initial investment on seeds, fertilisers, implements and other family expenses especially when they are seasonally unemployed. Therefore, credit is one of the factors which contribute in rural development. If institutional sources are not be available, farmers will borrow from informal sources which will increase cost of borrowing and thereby cost of production.
Importance of Marketing: Marketing is important for any production process. What if goods are produced but due to lack of marketing facilities the do not reach to the consumer especially agriculture produce which will perish after some time? It will be total waste of output. Therefore, we need marketing facilities in the form of regulated markets, proper transportation and communication facilities, market information, storage, insurance etc.

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Question 154 Marks

Why is rural development of tremendous importance for our country?

Answer

Mahatma Gandhi had once said that the real progress of India did not simply mean the growth and expansion of industrial urban centres but mainly the development of the villages. Rural development is of tremendous importance for our country because of the reasons enumerated below:

Even today, nearly 70% of the population of India resides in rural areas. So, if there is growth and prosperity in these areas, it will result in the growth and prosperity of the nation as a whole.
Rural development will help to create employment opportunities in the rural areas. This will not only raise the standard of living of the rural population, but also check the problem of migration.
Rural development creates opportunities in rural areas for education and skill development. This helps to increase the efficiency, productivity, mobility, income and standard of living of the people.

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Question 164 Marks

Why is state intervention necessary to regulate the activities of private traders in the rural agricultural sector?

Answer

Prior to independence, farmers were exploited by the private traders in many ways.

While selling their produce to traders, farmers suffered faulty weighting and manipulation of accounts.
Farmers who did not have the required information about the prevailing prices were often forced to sell at low prices.
Lack of storage facilities did not allow farmers to keep back their produce to fetch a better price in future.
Thus, state intervention became necessary to protect the small and marginal farmers from such exploitation.

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Question 174 Marks

What do you know about the programme "Kudumbashree"?

Answer

"Kudumbashree" programme focusses on the reduction of poverty of the women-oriented community.

It has been implemented in Kerala since 1995.
It is a thrift and credit society which started in the form of small savings bank for the poor women.
Its sole objective was to promote savings.
It was able to mobilise? 1 crore as thrift savings.
Such societies have won accolades as the largest informal banks in Asia, w.r.t. participation rate and the mobilisation of savings.

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Question 184 Marks

What are the chief features of regulated markets?

Answer

The purpose of a regulated market is to eliminate unhealthy market practices, to reduce marketing charges and to ensure fair prices for agricultural produce. All the states have now passed legislation for the establishment of regulated markets. Features of a regulated market:

A regulated market is started under the law either for any specific commodity or a group of commodities.
It is administered by the market committee which consists of representatives of the State Government, the legal bodies, the traders, and the farmers themselves.
It prevents unauthorised deductions from the price paid to the farmer and ensures that correct weights and measures are always used.
It has helped in using standard measures, eliminated middlemen, and thus ensured fair prices for the agricultural produce.

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Question 194 Marks

Discuss how the use of Information Technology can help in rural development of India.

Answer

Use of IT in Indian agriculture: The challenge here is to build cost-effective IT based systems to improve the living standards of Indian rural population.

If farmers can plan their crop according to the need that is likely to generate in future then the gap between the demand and supply can be bridged. Information technology assists in making database available to such farmers with regard to the returns, the market is likely to generate by the time the crops are ready. This would minimise the uncertainty of the farmers.
The quality and quantity of crops can be increased manifold if the farmers are made aware of the latest equipments, technologies and resources. Internet is a user-friendly medium, which provides a platform for easy exchange of information on a global level.
Issues like weather forecast, crop treatment, fertilisers, pesticides, storage conditions etc. can be well administered, if expert opinion is made available to the farmers.
With the help of information technology, the crutches of middlemen can be done away with and the farmers can get a clear vision about the market, latest technologies and hence channelise their potential accordingly. This would make them self-sufficient and yield planned crops with a ready market.

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Question 204 Marks

Mention some obstacles that hinder the mechanism of agricultural marketing.

Answer

Some obstacles that hinder the mechanism of agricultural marketing are:

Farmers suffer from faulty weighing and manipulation of accounts.
Due to misinformation about market prices and conditions farmers are forced to sell their product at lower prices.
The farmers lack access to proper storage facilities to store their produce for future sell at better prices.
The farmers cannot avail agricultural credit, leading to their exploitation by the moneylenders.

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Question 214 Marks

Enlist some problems faced by farmers during the initial years of organic farming.

Answer

In the initial years, it has been observed that the yields from Organic Farming are lesser than the modern agricultural farming. So, the farmers found it difficult to undertake large scale production. Also, due to the low yield per hectare, this technique was not financially viable for the small and marginal workers. The products obtained from organic farming have shorter life and are quickly-perishable. Moreover, the choice in production during off-season is quite limited in Organic Farming. Despite these shortcomings in the initial years, India has attained comparative advantage in Organic Farming due to labour intensive techniques. Hence, the availability of labour in abundance popularised Organic Farming in India.

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Question 224 Marks

Explain why after the initiation of reforms, the growth rate of agriculture sector decelerated to about 3% per annum during 1991-2011.

Answer

Major reason for the deceleration in the growth rate of agriculture sector to about 3% p.a during 1991-2011 is the decline in public investment since 1991.
Not only that other factors like inadequate infrastructure, lack of alternate employment opportunities in the other two sectors - namely, the industry or tertiary sector.
Further casual nature of employment also increased to hinder rural development.
The above adverse phenomenon witnessed in the agricultural sector lead to terrible on-growing distress and discontentment among the farmers throughout India. Number of suicides committed by the farmers across the country, thereby started mounting up, as they were victims of a 'debt-trap and could not come out of it.
Against this background it was high time for the policy-makers to critically evaluate the pitfalls in the agriculture sector and take immediate steps to undo the damage thus inflicted upon.

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Question 234 Marks

Briefly explain the role of buffer stocks in the context of agricultural marketing.

Answer

The Government of India has adopted the policy of buffer stocks to minimise the fluctuations in the food prices. Buffer stocks serve as shock absorbers in the economy and provide a defence mechanism against the widely fluctuating price levels. Under the buffer stock policy, the government builds up stocks of food through direct purchases from the farmers and releases these stocks for sale in the domestic market where prices are increasing. Also, buffer stock operations aim at eliminating unduly low prices consequent to bumper crops.

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