ROY’S INSTITUTE OF COMPETITIVE EXAMINATION

WBCS (EXE.) ETC. MAIN EXAMINATION

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INDIAN AGRICULTURE
 Land Development Banks (LDBs) or Cooperative Agricultural and Rural Development Banks (CARDBs):
l The land development banks are registered as cooperative societies, but with limited liability. These banks have two-
tier structure.

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l At the state level, there are state or central land development banks, now known as state cooperative agricultural
and rural development banks (SCARDBs) generally one for each state. They were previously known as central land
mortgage banks.

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l At the local level, there are branches of the state land development banks or SCARDBs and primary land development
banks now known as primary cooperative agricultural and rural development banks (PCARDBs).

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l Land Development Banks ( LDB) carry fixed interest, have maturity varying from 20 to 25 years, and are guaranteed
by the state government.
 Interest subvention scheme:
l The interest subvention scheme for farmers aims at providing short term credit to farmers at subsidised interest rate.
The policy came into force with effect from Kharif 2006-07. The scheme is being implemented for the year 2020-21.
l The interest subvention will be given to Public Sector Banks (PSBs), Private Sector Banks, Cooperative Banks and
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Regional Rural Banks (RRBs) on use of own funds and to NABARD for refinance to RRBs and Cooperative Banks.
l The Interest Subvention Scheme is being implemented by NABARD and RBI.
l Interest subvention for short term crop loans- the farmers can avail concessional crop loans of upto Rs.3 lakh at
7 per cent rate of interest. It also provides for an additional subvention of 3 per cent for prompt repayment within a
period of one year from the date of advance. The scheme will help farmers to avail short term crop loans up to Rs. 3
lakh payable within one year at only 4 per cent per annum.
 Priority Sector Lending:
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l RBI has issued Priority Sector Lending which mandates all Domestic Scheduled Commercial Banks to earmark
18% of their Adjusted Net Bank Credit (ANBC). Within 18 % target of agriculture, a sub-target of 8% for small and
marginal farmers has been fixed to help in increasing the flow of credit to small and marginal farmers
l Banks have been advised by RBI to waive margin/security requirement of agricultural loans up to Rs 1.6 lakh.
 Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme
(RWBCIS):
The Union Cabinet has approved revamping of PMFBY and RWBCIS. It is proposed to modify certain parameters/
provisions of on-going schemes of PMFBY and RWBCIS as under:
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(i) Allocation of business to Insurance Companies to be done for three years.

(ii) Central Subsidy to be limited for premium rates up to 30% for unirrigated areas/crops and 25% for irrigated areas/
crops. Districts having 50% or more irrigated area will be considered as irrigated areas/districts.
(iii) Enrolment under the Scheme to be made voluntary for all farmers.
(iv) Central Share in Premium Subsidy to be increased to 90% for North Eastern States from the existing sharing pattern
of 50:50.
l PMFBY is voluntary for states (i. States are not mandated to adopt PMFBY).
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l This scheme covers kharif, rabi crops as well as annual commercial and horticulture crops. For kharif crops the
premium charged would be up to 2% of the sum insured. For rabi crops the premium would be up to 1.5% of the sum
assured. The annual commercial and horticulture crops premium would be 5%.
l Under PMFBY Insurance claim to be settled within 2 month of application.
 Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) :
l While presenting the Interim Budget on 1st February 2019 the Union Minister for Finance, Corporate Affairs, Railways
and Coal, Shri Piyush Goyal introduced PM-KISAN.
l It was inaugurated by the Prime Minister Shri Narendra Modi on 24th February, 2019 which provides for transfer
of an amount of Rs. 6000/- per year in three equal installments each of Rs. 2000/- directly into the bank account of
beneficiary farmer families.
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l The Scheme initially covered only small and marginal farmer families with land holding up to 2 hectares as beneficiaries,
subject to certain exclusion criteria for higher income status. The Government later extended the scheme with effect
from 1st June 2019 to all farmer families irrespective of land holding size, subject to applicable exclusions.
l It is a Central Sector Scheme with 100% funding from the Government of India.
l It is being implemented by the Ministry of Agriculture and Farmers Welfare.
l The PM-KISAN Mobile App developed and designed by the National Informatics Centre in collaboration with the
Ministry of Electronics and Information Technology has been launched.

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 Krishak Bondhu (By West Bengal Govt.) :
l In January, 2019 the Department of Agriculture, Government of West Bengal introduced the “Krishak Bandhu”
Scheme with an aim to provide financial assistance to all farmers of West Bengal for agricultural purposes and to

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provide social security to the farm families in the event of untimely death of the farmers.
l Recently the scheme has been recast and renamed as “Krishak Bandhu (Natun)”. The new scheme was launched by
the Hon’ble Chief Minister of West Bengal on 17th June 2021.
l Direct benefit under the scheme includes financial assistance for cultivation purpose up to a maximum of Rs. 10,000 /- per annum

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and a minimum of 4,000/- per annum receivable in two equal installments during Kharif and Rabi seasons every year.

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l Farmers with 1 acre or more of cultivable land are entitled for assistance of Rs.10,000/- per annum. Farmers with cultivable
land holding of less than 1 acre will get assistance on pro-rata basis subject to a minimum assistance of Rs. 4,000/- .
l Under “Krishak Bandhu Death Benefit” component of the scheme, in case of death of a farmer between the age of
18 to 60 years, the State Government provides one time lump sum grant of Rs. 2 lakh to the family of the deceased
to ensure social security to the bereaved family.
 Decentralized Procurement Scheme (DCP) :
l The scheme of decentralized procurement of food grains was introduced in 1997-98 under which state government
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themselves procure and distribute food grains.
l The objectives of these schemes are to cover more farmers under MSP operation improving efficiency of PDS.
l The government of India urged all states to adopt the DCP scheme so that the cost of distribution can be saved and
outreach the price support mechanism to the farmers. To overcome the problem of gaps in flow of information about
procurement process on day- to day basis, an online procurement monitoring system has been evolved.
 Prices Stabilisation Fund Scheme:
l In March 2015, Govt. launched the price stabilization fund as a central sector scheme to support intervention.
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l In this scheme centre and state will borne the cost equally. The scheme will commence with only crops that is- onion
and potato and pulses.
l It is centrally managed by a Price Stabilisation Fund Management Committee (PSFMC) that approves all State
Government’s and Central Agencies’ proposals.
 Fair and Remunerative Price for sugarcane:
l The FRP is the minimum price that sugar mills have to pay to the sugarcane farmer.
l It was introduced in 2009 and replaced the concept of Statutory Minimum Price (SMP).
l It is determined on the recommendation of CACP.
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l The FRP is determined on the basis of various factors like cost of production, national and international price levels,
overall demand supply situation, inter crop price parity etc.
l State advised price- State Advised Price or SAP is the price announced by the state government, over and above the
FRP. In case of sugar pricing both the centre and the state have the power to fix sugarcane prices — while the centre’s
price is the minimum price, states can set an SAP that will always be higher than the centre’s FRP.
 Market Intervention Scheme (MIS):
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l The Department of agriculture and cooperation implements the market intervention scheme (MIS) for procurement
of horticulture commodities which are perishable in nature and are not covered under Price Stabilization Scheme.
l The objective of intervention is to protect the growers of those commodities from making distress sale in the event of
bumper cropping during the peak arrival period when prices tend to fall below economic level of cost of production.
l MIS is implemented where there is at least 10% increase in production or 10% decrease in ruling market price over
the previous normal year.
 Agricultural Produce Market Committee (APMC):
l Agricultural Produce Market Committee (APMC) is a system operating under the State Government since agricultural
marketing is a State subject that has Yards/Mandis in the market area that regulates the notified agricultural produce
and livestock.

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l The Government of India designed a model Agricultural Produce Market Committee (APMC) Act in 2003 as a first
attempt to bring reformations in the agricultural markets.
l It deals with selling of agricultural products directly and not through regulated markets.
l Till now 22 states have adopted it.
 National Agricultural Market (NAM):
l NAM is a pan- India electronic trading portal which networks the existing APMC (Agricultural Produce & Market
Committee) mandis to create a unified national market for agricultural commodities.

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l Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under Ministry of
Agriculture and Farmers’ Welfare, Government of India.
l NAM through Agri-Tech Infrastructure Fund (ATIF) also known as e-NAM scheme was approved in July 2015 and

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was launched on April 14, 2016 as a portal.
 Mega Food Park Scheme:
l Launched by Ministry of Food Processing Industries in 2008.
l Objective of the MFPS is to provide state of the art infrastructure facilities for the food processing along the value

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chain from the farm to the market.
l MFPS was expected to facilitate the achievement of the ‘Vision 2015’ to raise the processing of perishables in the

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country from 6% to 20%, value addition from 20% to 35% and the country’s share in global food trade from 1.5% to
3% by 2015.
l India’s first Mega Food Park Srini Mega Food Park opened at Chittoor in Andhra Pradesh in 2012.
l Jangipur Bengal Mega Food Park Ltd, Murshidabad is the only MFP in WB which is functional.
 National Mission on Food Processing :
l It is a centrally sponsored scheme launched in April 2012.
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l The basic objective of NMFP is decentralization of implementation of Ministry’s schemes, which will lead to substantial
participation of State Governments / UTs.
l Objectives :
i) To promote facilities for post-harvest operations including setting up of food processing industries.
ii) To undertake decentralization of the schemes so far operated by the Ministry of Food Processing Industries in order
to take into account the requirements suitable to the local needs.
iii) To augment the capacity of food processors working to upscale their operations through capital infusion, technology
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transfer, skill up gradation and handholding support.

iv) To support established self-help groups working in food processing sector to facilitate them to achieve SME status.
 National Action Plan on Climate Change:
l India’s National Action Plan on Climate Change (NAPCC) was released by the Prime Minister on 30th June 2008.
l The National Action Plan outlines India’s strategy to meet the challenge of Climate Change.
l The strategy promotes, firstly, the adaptation to Climate Change and secondly, further enhancement of the ecological
sustainability of India’s development path.
l Eight National Missions on Climate Change: (i) National Solar Mission, (ii) National Mission for Enhanced Energy
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Efficiency, (iii) National Mission on Sustainable Habitat, (iv) National Water Mission, (v) National Mission for
Sustaining the Himalayan Ecosystem, (vi) National Mission for Green India, (vii) National Mission for Sustainable
Agriculture and (viii) National Mission on Strategic Knowledge on Climate Change.
 National Mission for Sustainable Agriculture:
l NMSA has been made operational from 2014-15
l National Mission for Sustainable Agriculture (NMSA) has been formulated for enhancing agricultural productivity
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especially in rain fed areas focusing on integrated farming, water use efficiency, soil health management and synergizing
resource conservation.
l NMSA derives its mandates from sustainable agriculture mission which is one of the eight mission outlined under
National Action Plan on Climate change.
l NMSA has following four major program components or activities : 1) Rain fed Area Development (RAD), 2) On
Farm Water Management (OFWM), 3) Soil Health Management (SHM) and 4) Climate Change and Sustainable
Agriculture: Monitoring, Modeling and Networking (CCSAMMN).
l Some important key dimension of NMSA approved by PMCC ( PM’s council on climate change) are like-Improved
crop seeds. Water use efficiency, pest management, nutrient management, agricultural credit support etc.

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 Soil Health Card Scheme :
l Under the Integrated Soil Management initiative, the UPA Government in 2007-08 had launched a scheme to provide
soil health card to farmers. Soil Health Card Scheme was freshly launched by the PM Shri Narendra Modi on February
19, 2015 at Suratgarh, Rajasthan.
l The objectives of the SHC scheme are to issue soil health cards to farmers every two years so as to provide a basis
to address nutritional deficiencies in fertilization practices.
l It ensures additional income to farmers by increase in yields and it also promotes sustainable farming.

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 National Bamboo Mission :
l Launched as a Centrally Sponsored Scheme in 2006-07 under Mission for Integrated Development of Horticulture
(MIDH) during 2014-15.

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l National Bamboo Mission was renamed as National Agro-Forestry & Bamboo Mission (NABM) in 2017.
l Restructured National Bamboo Mission approved by the Cabinet Committee on Economic Affairs on 25-04-2018
under National Mission for Sustainable Agriculture.
l The Mission envisages promoting holistic growth of bamboo sector by adopting area-based, regionally differentiated

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strategy and to increase the area under bamboo cultivation and marketing.
 Rashtriya Gokul Mission :

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l Rashtriya Gokul Mission has been initiated by Government of India in December 2014 with the aim of development
and conservation of indigenous bovine breeds, genetic upgradation of bovine population and enhancing milk production
and productivity of bovines thereby making milk production remunerative to the farmers.
 Rashtriya Kamdhenu Aayog :
l The Union Cabinet approved the proposal for establishment of Rashtriya Kamdhenu Aayog in February 2019.
l The creation of Rashtriya Kamdhenu Aayog for the conservation, protection and development of cows and their
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progeny will provide the policy framework and direction to the cow conservation and development programs in the
country and for ensuring proper implementation of laws with respect to the welfare of cows.
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MULTIPLE CHOICE QUESTIONS 4. Consider the following statements :

1. The Union Government fixes the statutory minimum
1. In India, markets in agricultural products are regulated
price of sugarcane for each sugar season.
under the—
a) Essential Commodities Act, 1955 2. Sugar and sugarcane are essential commodities
b) Agricultural Produce Market Committe Act enacted under the Essential Commodities Act.
by states Which of the statements given above is/are correct?
c) Agricultural Produce ( Grading and Marketing ) Act, 1937
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d) Food Products Order, 1956 and Meat and Food Codes :

Products Order, 1973 a) Only 1 b) Only 2
2. Which of the reasons given below is/are responsible
c) Both 1 and 2 d) Neither 1 nor 2
for the migration of people from rural to urban areas
for the search of livelihood in Indian Economy? 5. An objective of the National Food Security Mission
a) Indian Agriculture’s dependence on the monsoon is to increase the production of certain crops through
b) Lack of irrigation facilities, low productivity of land area expansion and productivity enhancement in a
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c) Single crop mode of cultivation sustainable manner in the identified districts of the
d) All of these country. What are these crops?
3. What are the arguments in favour of crop sharing?
a) Rice and Wheat
a) Land owner is sure of getting a portion of the
produced crop b) Rice, Wheat, Pulses and Oilseeds
b) If the share of land owner remains fixed, the farmer c) Rice, Wheat, Pulses, Coarse cereals and Commercial
tries to maximize production crops
c) In this system, it is possible to make the optimum
use of inputs d) Rice, Wheat, Pulses, Oilseeds and Maize
d) All arguments state above
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6. Contribution of agriculture sector to Indian gross 12. Which of the following is not a cause of rural debt?
domestic product is— a) Seasonal unemployment
a) More than its percentage share in total employment b) Purchase of seeds and implements
b) Less than percentage share in total employment c) High wages
c) Both shares are fairly equal d) High consumption expenditure
d) None applies 13. The main components of evergreen revolution are:
7. Put out the correct statement:

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1. Up gradation soil health
a) Political will to make land reforms successful in 2. Promote lab to land demonstrations
India was strong. 3. Promoting rain water harvesting
b) Co-operative farming in India has not been successful. 4. Increasing cash crop production

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c) Administrative efficiency in imposing land ceiling was Which statements are correct?
high. a) 1, 2 and 3  b) 2, 3 and 4
d) Land reforms in India have become successful. c) 1, 3 and 4  d) All of these
8. Which one of the following agencies of the Indian

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14. Consider the following statements :
Government is engaged in promotion of standardization
1. Kisan Credit Card Scheme facilitates only short

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and grading of various agricultural products?
term credits to farmers.
a) Food Corporation of India
b) Bureau of Indian Standard 2. Kisan Credit Card is implemented only by the
c) Central Statistical Organisation Commercial banks of India.
d) Directorate of Marketing and Inspection Which of the statements given above is/are correct?
9. Consider the following statements : Codes :
a) Only 1 b) Only 2
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1. Regarding the procurement of foodgrains, Govt. of
India follows a procurement target rather than an open c) Both 1 and 2 d) Neither 1 nor 2
ended procurement policy. 15. FSSAI is working under which department of
2. Govt. of India (GOI) announces minimum support Government?
prices only for cereals. a) Ministry of Agriculture
3. For the targeted PDS, wheat and rice are issued by b) Ministry of HRD
the GOI at uniform Central Issue prices to the States/ c) Ministry of Health and Family welfare
Union Territories.
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d) Ministry of commerce
Which of the statements given above is/are correct? 16. Consider the following statements about Indian
Codes : Agriculture.
a) 1 and 3 only b) 2 and 3 only 1. The area under foodgrains has declined in the last
c) 2 only d) All 1, 2 and 3 two decades.
10. With reference to the provisions made under the 2. The average farm size in the country is very small
National Food Security Act, 2013, consider the and declining over the years.
following statements.
Which of the statement given above is/are correct?
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1. The families coming under the category of ‘below

Codes :
poverty line (BPL)’ only are eligible to receive
subsidies food grains. a) Only 1 b) Only 2
2. The eldest woman in a household, of age 18 years c) Both 1 and 2 d) Neither 1 nor 2
or above, shall be the head of the household for the 17. The Government announces MSP for—
purpose of issuance of a ration card. 1. Paddy 2. Cotton 3. Jute 4. Wheat
3. Pregnant women and lactating mothers are entitled Choose the correct answer.
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to a ‘take-home ration’ of 1600 calories per day during a) Only 1 and 4 b) Only 1, 2 and 4
pregnancy and for six months thereafter c) Only 1, 3 and 4 d) All 1, 2, 3 and 4
Which of the statement given above is/are correct? 18. Which one of the following has not been a component
a) 1 and 2 b) 2 only c) 1 and 3 d) 3 only of the agricultural strategy that brought about the Green
11. Which of the following is incorrect? Revolution?
a) Marginal holdings have increased. a) Greater intensity of crop
b) Guaranteed maximum prices
b) Small holdings have increased.
c) New agricultural technology
c) Large holdings have increased.
d) Package of Input
d) Medium holdings have decreased.
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19. Which one of the following is the objective of the 28. Which revolution includes ‘Food Chain Revolution’ to
National Watershed Development Project for Rainfed put a check on destroying foodgrains, vegetables and
Areas of India? fruits?
a) Sustainable farming system a) Golden Revolution b) Green Revolution
b) Integrated watershed management c) Rainbow Revolution d) Yellow Revolution
c) Restoration of ecological balance
29. The primary objective of Green revolution in India
d) All of these

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was—
20. Which one of the following agencies is not included in
the operation of the Kisan Credit Cards? a) To increase the extent of cash crop cultivation.
a) NABARD b) To increase the area of green forests under social

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b) RRBs forestry.
c) Cooperative Banks c) To introduce the Japanese method of paddy
d) Scheduled Commercial Banks cultivation.
21. Which of the following is the chief characteristic of d) Modernisation of agriculture through science and

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‘mixed farming’? technology.
a) Cultivation of both cash crops and food crops

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30. Indian Govt. has taken the following measures for
b) Cultivation of two or more crops in the same field
improving the conditions of agricultural workers—
c) Rearing of animals and cultivation of crops together
a) Minimum wages
d) None of these
22. Indian Green Revolution started from— b) Resettlement of land
a) Pantnagar b) Bengaluru c) Abolition of bonded labour
c) Kanpur d) Delhi d) All of these
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23. What is the main motive of the government behind having31. Public Distribution system means distribution of
a dual price system and setting up of fair price shops? essential commodities to a large number of people
a) To demote speculation and hoarding through a network of Fair Price Shops on a recurring
b) To incentivise the trading of essential commodities basis. The commodities distributed under PDS are—
c) To eliminate the monopoly of the traders and speculators
1. Wheat 2. Rice 3. Sugar
d) To make the essential commodities available to the 4. Pulses 5. Kerosene
weaker sections of the society
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Select the correct option.

24. Where is the Central Food Technological Research
a) 1, 2 & 4 only b) 1, 2, 3 & 4 only
Institute (CFTRI) situated?
c) 1, 2, 3 & 5 only d) All 1, 2, 3, 4 & 5
a) Bengaluru b) Kanpur
c) Mysore d) New Delhi 32. Primary sector of the economy includes activities—
25. Which of the following statement is not correct? a) that are based on use of mineral resources
a) National Food Security Mission was launched in b) where a good is produced by exploiting natural
2007-08 resources
c) that do not require skilled manpower
b) It aimed at increases in production of rice, wheat and
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pulses d) that produce only intermediary goods

c) The basic strategy is to promote and extend improved 33. MSP is declared by the government every year—
technologies. a) before the sowing season
d) It did not focus on soil management. b) after the sowing season
26. Which of the followings is known as ‘Package Programme’?
c) at the end of every year
a) IADP b) RKVY d) at the end of every month
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c) NAIS d) NFSM 34. What do you mean by the statement “India has achieved
27. The thrust of Land reform in India has been in respect National Food Security but has not ensured household
of three aspects of agrarian system which are-
food security ‘?
a) Land tenure system, strengthening legal system and
a) Each Household does not have a buffer stock.
investment
b) Food production has shown an increase but per capita
b) Land tenure system, redistribution of land and
consolidation of scattered holding availability has decreased.
c) Ensuring people’s participation, co-operative farming c) There is sufficient food stock but all household do
and high investment not have the access to it.
d) The number of people below the poverty line has
d) None of these
increased.
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