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MSP, APMC & Procurement — Set 14

Indian Agriculture · MSP, APMC और खरीद · Questions 131140 of 160

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1

Van Dhan Vikas Kendras are related to which type of produce?

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Correct Answer: B. Minor Forest Produce from tribal areas

Van Dhan Vikas Kendras (VDVKs) are tribal enterprise hubs focused on processing and value addition of Minor Forest Produce (MFP). They were launched by TRIFED (Tribal Cooperative Marketing Development Federation) under the Ministry of Tribal Affairs. VDVKs provide tribal communities with collection, processing, and marketing support for forest produce like honey, mahua, tamarind, and medicinal plants. MSP for MFP is separately announced by the government.

2

TRIFED implements MSP for which category of produce?

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Correct Answer: B. Minor Forest Produce (MFP) from tribal areas

TRIFED (Tribal Cooperative Marketing Development Federation of India) implements the MSP scheme for Minor Forest Produce (MFP). The scheme fixes MSP for over 87 MFP items including lac, tamarind, karanj seed, mahua flower, honey, and bamboo. State governments implement MFP procurement through LAMPS and state agencies. The MSP for MFP ensures tribals get fair prices for their forest livelihood income.

3

Paddy-to-rice conversion ratio is approximately:

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Correct Answer: C. 1.4:1 to 1.5:1

The conversion ratio of paddy to milled rice is approximately 1.4-1.5 kg of paddy per 1 kg of rice (or 65-67% recovery). This means about 35% of paddy weight is lost as husk and bran during milling. FCI uses this ratio for calculating rice stock from paddy procured. The conversion ratio varies by variety and moisture content of paddy.

4

What is the purpose of the 'Central Pool' in food grain management?

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Correct Answer: B. National stock of food grains maintained by FCI for PDS and welfare schemes

The Central Pool refers to the national stock of food grains (wheat and rice) maintained by FCI through procurement from states. It is used to meet NFSA/PDS allocations to states, welfare scheme requirements, and strategic reserve needs. States contribute to the central pool through their procurement and draw from it for PDS distribution. The central pool system ensures inter-state food security even when production varies regionally.

5

The government's income support for farmers through PM-KISAN is funded by:

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Correct Answer: B. Centre entirely (100% central sector scheme)

PM-KISAN is a 100% Central Sector Scheme, meaning the entire cost is borne by the Central Government. The scheme's annual cost is approximately Rs 60,000 crore. Unlike Centrally Sponsored Schemes, states do not need to contribute matching funds. This ensures that farmers in all states including smaller or poorer states can access the scheme without state fiscal constraints.

6

Government provides what percentage interest subvention on short-term crop loans through the Interest Subvention Scheme?

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Correct Answer: B. 2%

Under the Interest Subvention Scheme, the government provides 2% interest subvention to banks on short-term crop loans up to Rs 3 lakh per farmer. This brings down the lending rate to 7% per annum for farmers. An additional 3% incentive is given to farmers who repay promptly, making the effective rate 4%. The scheme is implemented through public sector banks, cooperative banks, and RRBs.

7

What is 'spatial price integration' in agricultural markets?

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Correct Answer: B. Degree to which prices in different markets move together reflecting integrated market conditions

Spatial price integration measures the extent to which agricultural commodity prices across different markets move together in response to common demand-supply factors. High integration means prices across markets quickly equilibrate through trade, reducing regional disparities. Poor spatial integration (due to poor roads, market fragmentation) leads to large price differences for the same commodity across regions. e-NAM aims to improve spatial price integration.

8

Agricultural Marketing Infrastructure (AMI) scheme provides what support?

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Correct Answer: B. Subsidy for building rural storage and market infrastructure

AMI (Agricultural Marketing Infrastructure) scheme provides capital investment subsidy for creating post-harvest management infrastructure including cold storages, pack houses, primary processing centres, and marketing facilities. It was merged into ISAM (Integrated Scheme for Agricultural Marketing). Eligible beneficiaries include cooperatives, SHGs, FPOs, and individual entrepreneurs. AMI supports the goal of reducing post-harvest losses.

9

The FCI godown network has a total storage capacity of approximately:

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Correct Answer: C. 75 million tonnes

FCI's owned and hired combined storage capacity for food grains is approximately 75 million tonnes, making it one of the world's largest grain storage networks. In addition, state agencies and private warehouses store significant quantities. FCI uses CAP (Cover and Plinth) storage as well as covered warehouses. Modernization of FCI's storage infrastructure is an ongoing priority.

10

What is 'CAP storage' in the context of FCI grain storage?

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Correct Answer: B. Cover and Plinth storage — grain stored in outdoor stacks covered with tarpaulin

CAP (Cover and Plinth) storage refers to a method of storing food grains in outdoor raised platforms (plinth) covered with tarpaulin sheets. This is a temporary storage method used when covered warehouses are full, especially during peak procurement periods. While cost-effective, CAP storage is vulnerable to quality deterioration. FCI has been reducing CAP storage by building more covered warehouses and silos.