Static Quiz 10 October 2023 (Indian Economy)

Solution: a)
Justification: MSP is like a price signal to provide incentives to the farmers for raising the production of particular crops whose MSP has been set higher. MSP is decided by Cabinet Committee on Economic Affairs (CCEA). However, a buffer stock is created by the government to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price.

Solution: a)
Justification: Statement 3: CACP is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965.
Statement 1 and 2: It is mandated to recommend minimum support prices (MSPs) separately for five groups of commodities namely Kharif crops, Rabi crops, Sugarcane, Raw Jute and Copra.
This to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country. However, the Cabinet Committee on Economic Affairs (CCEA) of the Union government takes a final decision on the level of MSPs and other recommendations made by CACP. Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives of the farming community and usually have an active association with the farming community. The Commission also makes visits to states for on-the-spot assessment of the various constraints that farmers face in marketing their produce, or even raising the productivity levels of their crops. Based on all these inputs, the Commission then finalizes its recommendations/reports, which are then submitted to the government. The government, in turn, circulates the CACP reports to state governments and concerned central Ministries for their comments.

Solution: c)
Justification: Statement 1: NERAMAC, inter alia, facilitates processing of horticulture produce; assists processing units to market their products; and helps in developing linkages of farmers with the market.
Statement 2: NERAMAC in pursuance of the objectives mentioned above, has provided support to large number of farmers, particularly those growing pineapple, ginger and large cardamom. It has also undertaken marketing of processed items sourced from local entrepreneurs.

Solution: a)
Justification: PMKSY is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. It also covers new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities. The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri- Waste.

Solution: d)
Justification: Statement 1: Bringing them under Priority Sector Lending (PSL) will help provide additional credit for food processing activities and infrastructure thereby, boosting food processing, reducing wastage, create employment and increasing farmers’ income.
Statement 2: To provide impetus to investment in food processing and retail sector, govt. has allowed cent per cent FDI in trading including through e-commerce, in respect of food products manufactured and / or produced in India. This will benefit farmers immensely and will create back – end infrastructure and significant employment opportunities.
Statement 3: A Fund of Rs. 2000 crore in NABARD has been established to make available affordable credit at concessional rate of interest to designated food parks and agro processing units in the designated food parks.