MSP, APMC & Procurement — Set 5
Indian Agriculture · MSP, APMC और खरीद · Questions 41–50 of 160
Which Kharif crop is procured in the largest quantity at MSP by FCI?
Correct Answer: C. Paddy (Rice)
Paddy (processed as rice) is the Kharif crop procured in the largest quantity at MSP by FCI and state procurement agencies. Procurement is highest in Punjab, Haryana, Andhra Pradesh, Telangana, Chhattisgarh, and Odisha. Paddy procurement directly supports the rice allocation under NFSA/PDS. India's MSP-based paddy procurement is one of the largest in the world.
Which Rabi crop is procured in the largest quantity at MSP by FCI?
Correct Answer: C. Wheat
Wheat is the Rabi crop procured in the largest quantity at MSP. Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh are the major procurement states. Wheat procurement directly feeds into the buffer stock and PDS distribution. India's wheat procurement operations are among the world's largest food procurement exercises.
The CACP was originally named:
Correct Answer: A. Agricultural Prices Commission
CACP was originally established in 1965 as the Agricultural Prices Commission (APC). It was renamed as the Commission for Agricultural Costs and Prices in 1985. It functions as an attached office of the Ministry of Agriculture and Farmers Welfare. CACP submits recommendations on MSP for 23 commodities across Kharif, Rabi, and commercial crop seasons.
Which of the following is not included in CACP's recommendations?
Correct Answer: C. Implementation of procurement operations
CACP is an advisory body that recommends MSP but does not implement procurement operations. Implementation of procurement at MSP is done by FCI, NAFED, CCI, JCI, and state agencies. CACP considers cost of cultivation, demand-supply situation, and price trends while making recommendations. Procurement at announced MSP is the operational responsibility of respective procurement agencies.
Under the Essential Commodities Act, the government can impose stock limits on traders. This power was modified by which Farm Law of 2020?
Correct Answer: C. Essential Commodities (Amendment) Act, 2020
The Essential Commodities (Amendment) Act, 2020 modified the Essential Commodities Act to restrict the imposition of stock limits on cereals, pulses, oilseeds, onion, and potatoes except in extraordinary circumstances. The amendment aimed to attract private investment in agri-marketing and cold chain infrastructure. Farmers' organizations feared this would enable large corporations to hoard and manipulate prices. This Act was also repealed in November 2021.
The Contract Farming Act of 2020 was formally titled:
Correct Answer: B. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act
The third Farm Law of 2020 was formally titled the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020. It provided a national framework for contract farming between farmers and sponsors (companies). It aimed to protect farmers in contracts by requiring written agreements. The Act was also repealed in November 2021 following farmer protests.
The one-nation one-market concept in agriculture is closely associated with:
Correct Answer: B. e-NAM and APMC reforms
The 'one nation one market' concept in agriculture is closely associated with e-NAM and the APMC reform efforts. e-NAM creates a unified national electronic market connecting mandis across states. The Farm Laws of 2020 also aimed to enable trading outside APMC to create a national market. The goal is to allow price discovery based on national demand-supply rather than local mandi conditions.
What is the full form of PSS in the context of PM-AASHA?
Correct Answer: A. Price Support Scheme
PSS stands for Price Support Scheme, one of the three components of PM-AASHA. Under PSS, central agencies like NAFED and NCCF physically procure oilseeds, pulses, and copra at MSP when market prices fall below MSP. State governments can also use their own agencies. The procurement cost is shared between the Centre and states.
NFSA stands for which legislation governing food security?
Correct Answer: B. National Food Security Act
NFSA stands for the National Food Security Act, 2013. It provides for subsidized food grains to about two-thirds of India's population (75% rural, 50% urban). Under NFSA, eligible households receive wheat and rice at highly subsidized prices (Rs 2/kg wheat, Rs 3/kg rice until 2024 when it became free under PMGKAY). FCI's procurement and buffer stocks directly enable NFSA implementation.
Procurement under MSP is mainly effective for which two crops in India?
Correct Answer: B. Wheat and Paddy
MSP-based procurement is most effective and widespread for wheat and paddy in India. FCI, along with state agencies, conducts large-scale procurement of these two crops across multiple states. For other crops like oilseeds, pulses, and coarse cereals, MSP-based procurement is limited and irregular. This limited scope of effective procurement is a major criticism of India's MSP system.