MSP, APMC & Procurement — Set 7
Indian Agriculture · MSP, APMC और खरीद · Questions 61–70 of 160
What is 'Kisan Dhan' in the context of digital agriculture?
Correct Answer: A. Farmer bank account for MSP payment
Under the Direct Benefit Transfer (DBT) system, MSP payments and agricultural subsidies are credited directly to farmers' Kisan bank accounts linked to Aadhaar. This eliminates middlemen and ensures timely payment. The system requires farmers to register their land records and bank details. Punjab and Haryana have largely shifted to direct payment of MSP proceeds to farmers' accounts.
The National Cooperative Exports Limited (NCEL) was formerly known as:
Correct Answer: B. NCCF
NCCF (National Cooperative Consumers' Federation) was renamed and reorganized as National Cooperative Exports Limited (NCEL) in recent years. NCCF and NAFED both serve as nodal agencies for PSS and market intervention operations. NCCF has a network of retail stores and also participates in procurement operations alongside NAFED. Both work under the Ministry of Cooperation.
The Fair and Remunerative Price (FRP) is associated with which crop?
Correct Answer: C. Sugarcane
Fair and Remunerative Price (FRP) is the minimum price fixed by the central government for sugarcane. FRP is determined by CCEA on the recommendation of CACP. Sugar mills are legally bound to pay at least FRP to sugarcane farmers. State governments can additionally fix a State Advised Price (SAP) above FRP.
State Advised Price (SAP) for sugarcane is fixed by:
Correct Answer: C. State Governments
State Advised Price (SAP) for sugarcane is fixed by state governments and is often higher than the FRP fixed by the Centre. States like Uttar Pradesh, Punjab, and Haryana announce SAP to give additional protection to sugarcane farmers. Sugar mills in these states must pay at least SAP. Arrears in SAP payment by sugar mills have been a recurring issue in UP.
Arhar (Tur dal) is categorized as which type of crop?
Correct Answer: B. Pulse (legume)
Arhar (Tur/Pigeon Pea) is a pulse crop (legume) that fixes atmospheric nitrogen and improves soil fertility. It is a major Kharif pulse crop grown in Maharashtra, Karnataka, Uttar Pradesh, and Andhra Pradesh. Arhar/Tur gets MSP under the Kharif MSP announcement. India is the world's largest producer and consumer of arhar dal.
When MSP is announced before the sowing season, it is called:
Correct Answer: A. Advance Price Announcement
When the government announces MSP before the sowing season begins, it is called an advance price announcement. This gives farmers price certainty before they decide what to cultivate. Kharif MSP is announced before June-July sowing and Rabi MSP before October-November sowing. Advance announcement helps farmers make informed cropping decisions.
Which committee recommended making MSP a legal right for farmers?
Correct Answer: A. Swaminathan Commission
The National Commission on Farmers (Swaminathan Commission) recommended that MSP should be a legal right of farmers, legally binding on all buyers. Currently, MSP is only an administrative price — the government procures at MSP but private traders are not bound to pay MSP. Making MSP legally enforceable has been a long-standing demand of farmer organizations. The recommendation was submitted in 2004-06.
Shanta Kumar Committee (2015) was related to which subject?
Correct Answer: B. FCI restructuring and food management
The High Level Committee chaired by Shanta Kumar submitted its report in 2015 on restructuring FCI and improving food management. It recommended that FCI should exit procurement in major states like Punjab and Haryana and focus on backward states. It also recommended reducing NFSA coverage and introducing direct cash transfers. Most of its recommendations remain unimplemented.
NITI Aayog's model APMC Act was recommended under which reform initiative?
Correct Answer: A. Doubling Farmers' Income
Under the Doubling Farmers' Income (DFI) initiative, NITI Aayog and the Ministry of Agriculture have recommended model APMC Act reforms. These reforms include allowing private markets, direct farmer-to-buyer sales, licensing of multiple buyers, and integration with e-NAM. States that adopted APMC reforms were given priority in PMKSY irrigation fund allocations. The DFI committee submitted its report in 2018.
Which state was the first to reform its APMC Act to allow private mandis?
Correct Answer: C. Bihar
Bihar abolished its APMC Act entirely in 2006, allowing free trade in agricultural commodities outside the mandi system. This was the most radical APMC reform by any state. However, it also meant loss of regulated market infrastructure, and critics argue it benefited traders more than farmers. Other states like Gujarat and Karnataka introduced reforms while retaining the mandi system.