Agricultural Policies & Supply Chains

Statement 1 is incorrect: Procurement at MSP is not "unlimited." While the government provides an open-ended procurement policy for certain cereals (like rice and wheat) in specific states, for most pulses and oilseeds, procurement is capped by targets, storage capacity, and the Price Support Scheme (PSS) guidelines. Statement 2 is incorrect: MSP is designed as a safety net (floor price), not a price ceiling. It does not prevent market prices from rising higher due to demand. Note on MSP Calculation: As per the Union Budget 2018-19, the Government of India follows the principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production (A2+FL). This formula is recommended by the Commission for Agricultural Costs and Prices (CACP) to ensure a minimum 50% return over the cost of production for farmers.

Statement 1 is not correct. The Government of India subsidizes fertilizers to ensure that fertilizers are easily available to farmers and the country remains self-sufficient in agriculture. This has been achieved largely by controlling the price of fertilizer and the amount of production. For example, as per the New Urea Policy of 2015, the government fixes the market price of urea. Statement 2 is correct. Fertilizer production uses 1.2% of the world's total energy out of which 90% is used for ammonia production, which is a key ingredient in the production of nitrogen fertilizers. Ammonia can be produced from natural gas. Statement 3 is correct. Sulfur is a major by-product of oil refining and gas processing. Most crude oil grades contain some sulfur, most of which must be removed during the refining process to meet strict sulfur content limits in refined products. Also, Sulphur is used in phosphoric acid fertilizer (There is a process known as 'The Wet Process' for producing the same). Hence, option B is the correct answer.

Public investment in agriculture refers to government expenditures aimed at improving the agricultural sector, including infrastructure development, technological improvements, and providing institutional support. Statement 1 is incorrect: Fixing the Minimum Support Price (MSP) is a policy decision, not an investment. While it affects the agricultural sector, it is not a direct public investment in terms of capital expenditure. Statement 2 is correct: The computerization of Primary Agricultural Credit Societies (PACS) is a public investment because it involves government funds directed towards modernizing agricultural credit systems, enhancing efficiency, and accessibility for farmers. Statement 3 is correct: Social Capital development is a public investment in agriculture, as it involves building networks and community-based resources that help farmers improve productivity and access to resources. Statement 4 is incorrect: Free electricity supply is more of a subsidy, not a direct public investment in the form of capital expenditure. Statement 5 is incorrect: Waiver of agricultural loans is a policy measure aimed at alleviating farmer debt but does not qualify as an investment in infrastructure or capital. Statement 6 is correct: The setting up of cold storage facilities by the government is a direct public investment aimed at improving agricultural infrastructure and reducing post-harvest losses. Hence, option C is the correct answer.

Minimum Support Price (MSP): The government sets an MSP to ensure a minimum income for farmers. If the market price falls below the MSP, the government procures rice from farmers at the MSP. This can lead to higher rice prices for consumers if the government releases these stocks slowly or not at all. Government's trading: Government agencies like the Food Corporation of India (FCI) procure and sell rice in the market. Large-scale procurement by the government can affect market availability and potentially drive up prices. Government's stockpiling: The government maintains buffer stocks of rice for food security purposes. If these stocks are depleted due to various reasons, it can lead to a shortage and price hikes. Consumer subsidies: The government provides subsidized rice to certain sections of the population through schemes like PDS (Public Distribution System). This can influence overall demand and market dynamics. If the subsidies are substantial, it can put upward pressure on prices. Therefore, all these factors can play a role in influencing the price of rice in India.
Hence, option D is the correct answer.

Statement 1 is incorrect. In terms of short-term credit delivery to the agriculture sector, Scheduled Commercial Banks (SCBs) and Regional Rural Banks (RRBs) generally deliver more credit compared to District Central Cooperative Banks (DCCBs). SCBs and RRBs have a larger network and resources to provide credit to the agriculture sector. Statement 2 is correct. One of the primary functions of DCCBs is indeed to provide funds to the Primary Agricultural Credit Societies (PACS). DCCBs act as the intermediary between the Reserve Bank of India (RBI) and PACS, facilitating the flow of credit from the central bank to the grassroots level through cooperative credit institutions. Hence, option B is the correct answer.

Statement 1 is incorrect: As per the report National Compilation on Dynamic Groundwater Resources of India, 2017 of CGWA, out of the total 6881 assessment units (Blocks/Mandals/ Talukas) in the country, 1186 units in various States (17%) have been categorized as Over-Exploited, 313 units (5%) as Critical, and 972 units (14%) as Semi-Critical. Statement 2 is correct: The CGWA was established in 1997 under Section 3(3) of the Environment (Protection) Act, 1986 to regulate and manage groundwater resources. Statement 3 is correct: India has the largest area under groundwater irrigation in the world. This is due to the country's heavy reliance on agriculture, which is predominantly rain-fed. Therefore, the correct answer is B. 2 and 3 only.

The question is asking about the raw materials that can be used for the production of biofuels according to India's National Policy on Biofuels. Cassava is a starch-rich root vegetable that can be used to produce biofuel. Damaged wheat grains, which are unfit for human consumption, can also be used to produce biofuel. Groundnut seeds are not mentioned in the National Policy on Biofuels as a raw material for biofuel production. Horse gram is also not mentioned in the National Policy on Biofuels as a raw material for biofuel production. Rotten potatoes, which are unfit for human consumption, can be used to produce biofuel. Sugar beet is a plant whose root contains a high concentration of sucrose and it is grown commercially for sugar production. It can also be used to produce biofuel. Therefore, according to India's National Policy on Biofuels, Cassava, Damaged wheat grains, Rotten potatoes, and Sugar beet can be used as raw materials for the production of biofuels.

Statement 1 is correct: Fertigation is a method of delivering fertilizers to crops through an irrigation system. It involves the precise application of water-soluble or liquid fertilizers directly to the root zone of plants during the irrigation process. This technique allows for the controlled release of nutrients, ensuring that plants receive the right amount at the right time.
Fertigation allows for the control of the pH of the irrigation water, which can be adjusted to the optimal level for nutrient absorption by the plants. Statement 2 is incorrect: While fertigation does allow for the efficient application of many types of fertilizers, rock phosphate is not water-soluble and therefore cannot be applied efficiently through fertigation. Statement 3 is correct: Because fertigation delivers nutrients directly to the root zone of plants, it increases the availability of nutrients to the plants. Statement 4 is correct: Fertigation allows for the precise application of nutrients, which reduces the risk of nutrient leaching. Therefore, options 1, 3, and 4 are correct.

Statement 1 is correct. Like most of the pulses in India, Black gram pulse too can be cultivated both in kharif as well as in rabi season in India. Statement 2 is incorrect. Chickpea pulse, also known as Chana, is the most dominant pulse produced in India. It contributes around 40% of the total pulse production in India. Statement 3 is incorrect. Both kharif and rabi pulse production have generally shown an increasing trend over the last three decades, largely due to government initiatives and technological advancements. Rabi pulses, which make up a larger share of the total production (more than 60%), have shown a substantial increase. Hence, option A is the correct answer.

Statement 1 is correct: The bud chip method involves raising sugarcane settlings in a nursery before transplanting them into the main field. This method reduces seed material requirements by using only the bud instead of the entire sett, leading to cost savings and better efficiency. Statement 2 is incorrect: Multi-budded setts generally have a higher germination percentage than single-budded setts. Single-budded setts may face more difficulty in germination compared to setts with multiple buds, which provide better shoot emergence. Statement 3 is incorrect: Under adverse weather conditions, large setts have better survival rates because they store more nutrients and moisture. Single-budded setts are more vulnerable to unfavorable conditions and may have lower survival rates. Statement 4 is correct: Tissue culture techniques are successfully used for sugarcane cultivation. Settlings prepared from tissue culture help in producing disease-free, high-yielding plants and allow rapid multiplication of quality planting material. Hence, option C is the correct answer.