MSP, APMC & Procurement — Set 15
Indian Agriculture · MSP, APMC और खरीद · Questions 141–150 of 160
Steel silo technology for grain storage is being adopted by FCI because:
Correct Answer: B. It reduces storage losses, improves grain quality, and allows mechanized handling
Steel silos significantly reduce post-storage losses compared to traditional bag storage, as they provide hermetic sealing preventing pest infestation and moisture ingress. Silo handling is mechanized, reducing labour costs. They also help maintain grain quality for longer periods. FCI is constructing silos under a Hub and Spoke model with a target of adding 10 million tonnes of silo storage capacity.
The 'mandi tax' burden in Punjab and Haryana is considered high because:
Correct Answer: B. Combined levies (market fee + arhat + rural development fund) can reach 8-10% of MSP
In Punjab and Haryana, the combined incidence of mandi charges (market fee, APMC cess, rural development fund, arhat commission) can be as high as 8-10% of the MSP value. This is one of the reasons why wheat and rice procured from Punjab/Haryana has higher economic cost for FCI compared to other states. Reduction of mandi taxes is a key demand for reducing food subsidy and improving farmer competitiveness.
What is the procurement center-level operation in MSP procurement called?
Correct Answer: C. Procurement Centre or Paddy Purchase Centre
Procurement Centres (PCs) or Paddy Purchase Centres (PPCs) are temporary centres set up by state agencies and FCI at the village/block level during harvest season to enable farmers to sell produce at MSP without travelling to distant mandis. This brings procurement closer to farmers, especially in eastern states like Odisha, Chhattisgarh, and West Bengal. The number and distribution of PPCs determines effective MSP reach.
Cooperative banks and RRBs play what role in the MSP credit ecosystem?
Correct Answer: B. Providing KCC loans, pledge finance, and agricultural credit to farmers
Cooperative banks (including PACS at the primary level) and Regional Rural Banks (RRBs) are the frontline agricultural credit providers. They issue KCC loans, provide pledge financing against warehouse receipts, and disburse government scheme benefits. NABARD provides refinance to cooperative banks and RRBs for agricultural credit. They are critical in ensuring MSP ecosystem credit support to farmers.
Price Support Scheme (PSS) operations have been most frequently triggered for which commodity?
Correct Answer: C. Pulses and oilseeds
PSS operations under NAFED and state agencies have been most frequently triggered for pulses (arhar, moong, urad, chana) and oilseeds (groundnut, mustard, soybean) when their market prices fall below MSP. These crops have more volatile prices and less organized procurement systems than wheat and rice. PSS provides a safety net for farmers of these crops. Large-scale PSS operations were seen in 2015-16, 2018-19, and subsequent years.
The Model Agricultural Land Leasing Act (2016) was prepared by:
Correct Answer: B. NITI Aayog
The Model Agricultural Land Leasing Act (2016) was prepared by NITI Aayog to encourage states to reform their land leasing laws. It aimed to legalize and regulate land leasing so that tenant farmers get access to institutional credit, crop insurance, and government scheme benefits. Currently many tenants farm illegally due to prohibitive leasing laws, missing out on formal benefits. NITI Aayog promoted this model act for state adoption.
NITI Aayog's 'Agricultural Exports Policy 2018' aimed to achieve what target?
Correct Answer: B. Double agricultural exports to USD 60+ billion by 2022
The Agriculture Export Policy 2018 aimed to double India's agricultural exports to USD 60 billion by 2022 from the 2017-18 level of around USD 30 billion. The policy identified focus commodities, export clusters, and supply chain improvements. It emphasized value-added exports and organic produce. India's agricultural exports touched record levels post-COVID but are subject to export restrictions when domestic prices spike.
Contract farming under the repealed 2020 Farm Act was meant to address which issue?
Correct Answer: B. Reduce price risk for farmers by pre-agreeing prices with buyers before planting
Contract farming legislation was meant to allow farmers to enter into pre-planting contracts with agri-businesses, processors, and exporters at agreed prices, thus reducing price risk. The 2020 Act provided a legal framework protecting farmers from exploitation in contracts. Critics feared large corporations would dominate and create long-term dependence. Farmers also feared courts would be inaccessible to small farmers in disputes.
Which crop has the highest MSP hike in recent years to promote diversification from paddy and wheat in Punjab?
Correct Answer: C. Moong (green gram)
CACP has recommended higher MSP hikes for moong (green gram) in recent years to encourage diversification from paddy cultivation in Punjab, which causes groundwater depletion. Moong is a short-duration Kharif crop that can fit into the paddy-wheat rotation. Higher MSP incentivizes moong cultivation and also adds a pulse to the diet. Punjab and Haryana governments have promoted moong cultivation with procurement support.
Agri-logistics refers to which aspect of the agricultural supply chain?
Correct Answer: B. Transportation, storage, packaging, and handling from farm to market
Agri-logistics covers the entire supply chain from farm to consumer including transportation (road, rail, air), cold storage, processing, packaging, and distribution. India loses an estimated Rs 90,000 crore annually in post-harvest losses due to inadequate agri-logistics infrastructure. Kisan Rail, AIF, Operation Greens, and cold chain subsidies are government interventions to improve agri-logistics. Efficient logistics reduces the gap between farm gate price and consumer price.